Planning matters

Living Your Best Life with Long Term Care Insurance

Watch a special video from our Insurance Specialist, Jeri Boston, where she breaks down how long term care insurance can help us protect the valuable nest we’ve built. Interested in reading rather than watching? See below for the video script.

Today I want to share with you some important information about long term care insurance and how purchasing it can help protect the valuable nest egg you have built.

I’m pretty sure you have dreams of living a FULL life in retirement, but unplanned for expenses can keep you from living YOUR best life!

You’ve worked hard, saved and planned your retirement.  Then what happens?  Life throws you a curve ball!  The pandemic and how it has played out is certainly an example of a big ‘ol curveball none of us saw coming!  Wouldn’t you agree?

Here are some things to consider….

What would happen if you develop a chronic illness OR have an accident that makes it impossible for you to take care of yourself?

Who will take care of you and how will you pay for the care?

Would knowing you have an option to cover expenses related to your care make you feel better?

Having long-term care insurance helps you access the quality of care you need in a setting that allows you maintain your independence.

In addition, it relieves your family of the burden financially, physically and emotionally of providing care.

Most people don’t realize if they live past age 65 there is a 70% chance they will need long-term care at some point and it is expensive! 

According to a study done by the Genworth Insurance Company in 2019, Baby Boomers are turning 65 at a rate of 10,000 per day and the trend will continue until 2030. Higher demand will drive up the cost of care.

The hourly rate for a home health care aide is $20.  Assisted living costs approximately $50,000 a year depending on the level of care you receive.  Nursing homes are in the 80-100 thousand dollar range annually.  These are CURRENT numbers.  According to the same Genworth study, costs are rising faster than the rate of inflation.

Many people think health insurance and government programs will pay for long-term care.  Pretty much not the case.

  • Health insurance only pays for doctor and hospital bills.
  • Medicare only pays for skilled nursing care for maximum of 100 days
  • Medicaid only pays if you spend down your assets to just $2,000, with just a few exclusions.

What this all means is you will need to pay for care from your personal savings or retirement funds.

To avoid spending down your assets, you can purchase long term care insurance that will help cover the cost of your care.

Don’t put it off! The best time to buy long-term care insurance is in your 50’s to early 60’s, when premiums are affordable and your health is good.  

If you’re interested in learning more about long term care insurance, please let me know. Along with your planner, we can determine which kind of coverage would work best for you and within your budget. Together we’ll get you on the path to living your best life!

Written By Jeri Boston