You've worked hard to build your retirement savings. Perhaps you are in your 50s or 60s now and are wondering how you can protect your retirement savings from long-term care expenses. It's a growing problem for many seniors. According to Kiplinger, long-term care expenses average about $85,000 a year for a private nursing home. With long-term care insurance, you may be able to reduce your out-of-pocket costs and safeguard your retirement savings from this expensive, yet necessary service.
How Can Long-Term Care Insurance Help?
Many financial advisors recommend that people in their 50s and 60s obtain long-term care insurance because, at this point, you are still likely to be healthy. The longer you wait, the higher your costs for obtaining this type of insurance will be. That means that long-term care insurance probably won’t ever be as affordable as it is right now.
How Much Do You Need?
The amount of insurance to purchase can be one of the hardest decisions you need to make. You'll need to factor in the costs of long-term care in your area. Talk to local providers about this. You also need to consider double costs if both spouses live in this type of setting, or when paying for multiple residents otherwise. It's a good idea to consider the waiting period on these policies. The longer this waiting period is, the more affordable your premium will be, but the longer you have to wait to use the plan. Factor in inflation, likely living expenses (based on your budget) and any medical conditions you may have.
The good news is you do not have to make these decisions on your own. Work with your financial advisor or independent insurance agent to determine if your retirement savings is enough to forgo this type of insurance or if your employer provided some coverage in your pension. In most cases, long-term care insurance remains an affordable way to pay for these needs later in life. The sooner you act, the more affordable the plan can be for you. That means you'll also be able to purchase the value that you feel most comfortable with going forward.
Is your future covered? Call Wilber-Price Insurance Group at (800) 797-2016 for more information on long-term care insurance.