By Ash Toumayants
Do you really need long-term care insurance? It’s a question that’s crossed all our minds at some point. For some, the thought of sky-high bills and burdened family members is enough to make them purchase a long-term care plan. But others don’t want it because they don’t think they’ll need it or they’re not willing to pay the high premium.
Regardless of which camp you’re in, here are 5 surprising things you should know about long-term care (and how it could affect your nest egg later on in life).
1. Nearly Everyone Will Need Long-Term Care In Their Lifetime
Nearly 70% of people turning 65 today will need long-term care in their remaining years. (1) And it’s estimated that 14% will need care for 5+ years, while the average person will need it for one to three years. (2) It’s important to know that we’ll likely all need long-term care at some point.
2. Medicare Typically Doesn’t Pay For Long-Term Care
It may shock you to know that Medicare doesn’t cover typical long-term care expenses. It covers acute care expenses like doctors’ visits, prescription drugs, and hospital stays, but it doesn’t pay for daily, personal care needs such as bathing, feeding, getting dressed, and supervising. (3)
3. It’s Difficult To Pay For Rising Long-Term Care Expenses Without Insurance
Did you know the average monthly cost for an in-home health aid is $4,290? Assisted living facilities cost $4,051 a month on average, while a private room in a nursing home is around $8,517. (4) With costs this high, it’s no wonder that long-term care expenses often result in financial plan failures for 32% of households with a $1 million net worth. (5)
4. Long-Term Care Insurance Covers More Than You Think
Many people think long-term care insurance is for nursing homes only, but there’s way more to it than that. This insurance also covers home health aides, assisted living facilities, retirement communities, and more. It even pays for professional help should you need assistance eating, showering, getting dressed, and using the bathroom.
5. Women Need Long-Term Care Insurance More Than Men
Women can expect to have higher long-term care costs than men simply because they live longer. When a husband is sick, for example, the wife often steps up to care for him until his passing. When the wife finds herself in the same situation years later, she typically doesn’t have a spouse to offer the same care. As a result, this burden falls on children or extended family members, which is where long-term care insurance really comes in handy.
How We Help
Statistics show that you’ll likely need long-term care at some point. And while Medicare covers medical bills due to acute illness, long-term care insurance fills in the gap by covering personal care costs as well.
At Strong Tower Associates, we specialize in healthcare planning and helping you make sure medical expenses don’t eat away at your nest egg in retirement. If you’d like to learn more about our services, get in touch by calling 814-325-9806 or emailing [email protected]. Or, if you prefer, you can now quickly and easily click here to request a meeting using our online system!
About Ash
Ash Toumayants is a financial advisor and the founder of Strong Tower Associates. For over a decade, he has helped hardworking people across Central Pennsylvania prepare for retirement. Fueled by a passion for helping people see through the veil of confusion that shrouds the financial world, his goal is to educate his clients so they can make more sound choices regarding their financial future. A Penn State graduate, he currently lives in State College with his lovely wife, Noelle, and their four adorable children. Learn more by connecting with Ash on LinkedIn or emailing [email protected].
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(1) https://longtermcare.acl.gov/the-basics/how-much-care-will-you-need.html
(3) https://longtermcare.acl.gov/medicare-medicaid-more/medicare.html
(4) https://www.genworth.com/aging-and-you/finances/cost-of-care.html
(5) https://www.businessinsider.com/10-things-to-know-about-long-term-care-2016-9