Mortality isn’t anyone’s favorite subject, I think we’d all like to believe we are invincible, but the reality is that any one of us could, at any time, suffer a potentially debilitating accident or injury that could easily knock us out of commission for an extended period of time.
Long-Term-Care: The Expense
Did you know that the median annual rate for at-home care in the US is $40,000? Or that a private room in a nursing home costs nearly $84,000 for one year of care? Medicare won’t cover these costs.
If you are over the age of 50 and planning your retirement, you should consider investing in Long-Term-Care Insurance.
The best time to purchase one of these policies is while you are in your mid-50s. The cost of coverage rises substantially by age 60, and by age 70 isn’t typically worth the investment.
Unlike health insurance, which can no longer deny you coverage because of a pre-existing condition, long-term-care insurers can. That means if you have already been diagnosed with a chronic condition (dementia, Parkinson’s, etc), few if any insurers will provide coverage, and those willing to put out a policy are likely to charge you an arm and a leg.
We know this isn’t something you want to think about right now, but it is important in planning your financial future. Protecting against accidents and the blows of old age begins now.
You’ve spent years building your IRA and 401k, no one wants to see their savings depleted on account of an unforeseen accident resulting in the need for long-term hospitalization or round-the-clock care.
As the life expectancy of the average American continues to rise, premiums for long-term-care insurance do as well. Women in particular are going to be subject to a higher rate than men because their life expectancy is greater than that of their male counterpart.
Invest now in Long-Term-Care Insurance to protect not only you and your spouse, but you future as well.