Why LTC Planning Is Essential for Boomers
As millions of baby boomers in the United States reach old age every year, experts predict the number of long-term care patients will double over the next 30 years.
What does that mean for you? It means that if you don't have a long-term care plan in place, you and your family may have to face some tough choices down the road.
Read on to learn why a long-term care plan is critical for every baby boomer.
Americans are living increasingly longer lives. Recent estimates give a healthy 65-year-old man a 24% chance of living to at least 90, and a healthy woman a 35% chance of living that long. While this is great news, the longer we live, the more likely we are to suffer from a long-term care event.
This all means that now is the time to put a plan in place.
The hefty price tag
If you or a loved one suffers from an illness that requires long-term care, get ready for some sticker shock. A year-long stay in a nursing home typically can cost between $40,000 and $80,000, often more. While prices vary by state and the type of care required, one thing is consistent across the board when it comes to long-term care: it's phenomenally expensive.
Just take a look at the average costs of various types of long-term care in the U.S. (rates will vary depending on location):
$9,581 a month for a semi-private nursing home room
$10,798 a month for a private nursing home room
$6,200 a month for care in an assisted living unit
$25 per hour for a home health aide.
These costs can quickly add up and eat away at your nest egg. For example, let's say you hire a home aide to assist your husband just four hours a day for three days a week. At $25 an hour on average, that would come out at $300 a week. That adds up to nearly $12,000 a year. Unfortunately, Medicare does not cover these exorbitant long-term care expenses.
To top it off, informal home care is simply not a realistic option for most families these days. After all, most children of baby boomers are struggling to balance their own work and family life. They simply don't have the time or resources to care for sick parents.
This is why it's critical for each and every family to plan ahead for a potentially expensive long-term care event. Without the proper protection, such an event could devastate a family's finances.
The simple solution: LTC insurance
How can boomers handle the skyrocketing costs of a potential long-term care event? The answer is simple: long-term care insurance. Without LTC coverage, a nursing home stay or another long-term care event could destroy your family's finances.
Because LTC insurance covers many of these expenses, this valuable coverage will not only protect your finances ― it will also help you to maintain your current standard of living if you or your spouse requires long-term care.
The takeaway
Without LTC insurance, the cost of a nursing home stay or a home health care aide could wreak havoc on your finances and whittle away at that nest egg you've worked so hard to build. Don't burden your loved ones with this kind of emotional and financial strain. Create a long-term care plan today to save your family a lot of heartache and stress tomorrow.
With LTC insurance, you can decide the level of your benefit should you need long-term care. If you have resources to pay for some, but not all, of a long-term care arrangement, you can choose a payout based on that.
If you want to discuss your long-term care insurance options, call us. We can evaluate your unique situation and help you customize an effective plan.
Contact us today!
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