Long-Term Care Will Be a Costly Necessity for Many Seniors

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Long-term care insurance can help protect your retirement savings

Shield your finances with long-term care insurance

How does long-term care insurance work?

Long-term care insurance can help protect your retirement savings

As we age, the likelihood of requiring assistance with daily activities increases significantly. A recent study found 70% of individuals over the age of 65 will require some form of long-term care during their lifetime. This care might involve in-home caregivers or a move to facilities such as assisted living, memory care or nursing homes, where the average stay is 3 1/2 years.

The cost of these services can be substantial, with annual median expenses ranging from $24,700 to $116,800. Unfortunately, most of these costs aren’t covered by Medicare, which can leave many seniors with no other option but to deplete their hard-earned retirement savings.

Shield your finances with long-term care insurance

Purchasing a long-term care insurance policy is a proactive strategy to manage these potential expenses while ensuring you receive the necessary care. This insurance might be suitable if you:

• Prefer to stay in your home as long as possible

• Do not wish to depend on family members for ongoing support

• Seek to safeguard your retirement funds

How does long-term care insurance work?

When you buy a long-term care insurance policy, begin by choosing an elimination period, during which you’ll be required to cover any care-related expenses out of pocket.

You have the option to choose how to receive policy benefits. A traditional reimbursement benefit is payable after satisfying your policy’s elimination period. Or you can elect to receive a cash benefit with no elimination period to satisfy.

For insurance benefits to kick in, a licensed health care practitioner must verify that you’re chronically ill and provide a prescribed plan of care.

Once eligible, the policy covers the agreed-upon long-term care services until the limits of the policy are reached, for as long as the chronic illness persists.

Estimate your long-term care needs

Deciding whether long-term care insurance is right for you doesn’t have to be an overwhelming decision. Use this simple calculator to estimate your long-term care insurance needs so you can make an informed choice.