As you evaluate your retirement plan with your financial advisor, you may be wondering if you will have saved enough to live comfortably. With the average cost of a private room in a long-term care facility averaging around $100,000, long-term care insurance is a popular option for many to help ensure they and their spouse live comfortably in retirement. If you’re considering long-term care (LTC) insurance but aren’t sure if it’s right for you, here is some information that may help.
Long-Term Care Insurance Coverage
Policies vary in coverage. The more you want covered, the higher the cost. You need to choose your policy carefully so you can afford to cover the premiums even after retirement. And, if you’re wondering if you ever will use your benefits, considering that the American Association for Long Term Care Insurance reports that 68%of those 65 and older will require long-term care, the odds are that you will.
You can also use the benefits before retirement. Unlike much of your retirement savings, LTC insurance can be used at any age without penalty. In fact, depending on the policy, you may be able to use the benefits within just 90 days of the start of the policy.
What About My Medicare & Medicaid?
Medicare doesn’t cover long-term care facilities. What it does cover is rehabilitation as the result of an injury or necessary surgery. This means a short stay(100 days or less)in a skilled nursing facility.As for Medicaid, it may cover a stay in a LTC facility once your other qualifying assets have been exhausted.This includes retirement accounts and savings, but may exclude your home depending on several circumstances.
Benefits of LTC Insurance
There are many benefits of a LTC insurance policy. It’s stressful for all family members when they learn that an injury, illness or disability of a loved one requires around-the-clock care. One of the easiest ways to eliminate the stress is to have a long-term care insurance policy. This may be the biggest benefit as it will help your loved ones.Another benefit not always considered is that it can be used at any age. That means if you require long-term care even while you’re still working, you can use it. You won’t have to drain your savings or the investments you planned on using later in life.
For married couples, one benefit is when you both choose a policy and one needs it, the other can still afford to live comfortably without worry.
We’re here to help you assess if long-term care insurance is right for you and which policy will best fit your unique situation. Call (727) 796-9660 to schedule an appointment for a free consultation