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Planning Ahead for Long-Term Care Costs

According to the AARP, 52 percent of people who turn 65 will develop a severe disability that will require long-term care at some point.

Long-term support and services include any kind of assistance that helps a person who cannot help themselves due to a cognitive, physical, or chronic health condition.

These services include instrumental activities of daily living such as eating, bathing, and getting dress.

Long-term care may also include stays in assisted living facilities or nursing homes for those who can no longer live safely in their own house.  

Medicare is the invaluable federal insurance program that helps cover the increasing costs of healthcare seniors need as their age progresses.

Medicare covers a lot of common healthcare costs and supplemental Medicare Advantage plans can help seniors deal with even more expenses, including prescriptions, dental care, and vision needs.

However, it does not cover long-term care.

Seniors must take action to save or insure themselves in the likely chance that they will need long-term care at some point.

How Much Do You Need?

The costs of long-term care vary depending on where you live, which services are needed, and the amount the time you require them.

According to survey information, the cost of a private nursing home room in 2017 was over $97,000 a year. A shared room costs less, but it will still put a person back over $85,000 a year.

The cost of an in-home health care for 44 hours a week is almost $50,000 annually, while homemaker services for the same amount of time are $48,000.

The most cost-efficient long-term care – a room in an assisted living facility and adult daycare – costs $45,000 and $18,200, respectively.

And these numbers were just for recent years. Experts predict healthcare costs will increase as the aging population grows.

So how do you secure the finances needed to fund long-term care and services?

Long-Term Care Insurance

Long-term care insurance helps cover the costs of care when you have a chronic medical condition and Medicare or private insurance won’t cover them.

It can be expensive, but the earlier a person invests in a policy, the cheaper it will be.

Long-term care insurance gives seniors choices when it comes to the assistance you need and want.

It also helps protect your savings and financial assets, and relieves family members of the burden of covering the costs and duties of long-term care.

Many people like to bundle their long-term care insurance with final expense insurance as a way to save money on both policies.

Final expense insurance pays for all the costs incurred, including funeral costs or medical bills.

When you bundle final expense insurance with long-term care, it provides you with the peace of mind knowing your family will not be financially encumbered when you pass away.

Unpaid Caregivers

People who do not have the means to pay for nursing homes or assisted living facilities tend to rely on family members to act as “informal” caregivers, which is just a term that sugarcoats the fact that these friends and family members are not paid.

Not only do they perform custodial care for free, but they also take on a whole slew of unforeseen costs.

The average amount people spend out of pocket for long-term care when excluding facilities costs can total $14,000, with family members contributing an additional $8,000.

Furthermore, caregivers tend to lose career opportunities and income as a result because the work is so physically and emotionally draining.

Final Thoughts

The majority of seniors will need some kind of long-term care at some point, and Medicare does not cover these costs. Many people depend on their loved ones to act as unpaid caregivers, but that can still cost a lot of money, as well as emotional resources.

Investing in long-term insurance gives you options when it comes to long-term care and protects your family from having to take on a very expensive financial burden.

Get in touch with the InsureOne Benefits team to ask about the advantages of Final Expense, Long-Term Care policies and other coverage you may need.

What’s stopping you from investigating these policies?