Recently, a user posted the following question on the PBS website in the Travis Smiley blog area: “What is your advice on taking out long-term healthcare insurance at age 76, with premiums amounting to $6,000 per year?” This question surfaces often when considering the purchase of a long-term care insurance plan. There is no one-size-fits-all answer, but there are some good rules of thumb and factors to consider such as age, health condition, whether or not you have substantial assets and income, among others.
Long-term care insurance put simply is insurance that covers costs incurred during “long-term” stays in nursing homes, assisted-living facilities, in-home care or other environment where you require 24-hour or near-24-hour care. According to the U.S. Department of Human Services, 4 out of every 10 people who reach the age of 65 will require a stay in a nursing at some stage in their lives. And, since Medicare and nor regular health plans cover these costs, many people aren’t aware of this major vulnerability in their retirement planning and financial future.
In the example above from the Travis Smiley site on PBS, $6,000 might seem like a lot for annual premiums for a long-term care insurance policy. But, the article points out that a stay in an assisted-living facility in some states can cost up to $42,000 per year or $3,500 per month. Alternatively, a semi-private room in a nursing home can be as much as $73,000 per year on average. Also, new in-home monitoring technologies that might soon use devices like the iPad or iPhone will likely be costly in the future.
So, if you have substantial assets that you wish to keep or pass on to your heirs, and you can afford the $500 per month, purchasing a long-term care insurance policy could be a savvy financial move, even at age 76 and, likely, especially at age 76. The median cost for an individual state for nursing or assisted-living care is around $65,000 per year. If a person needs care for 3 years it could drain a person’s nest-egg quick.
Regardless of your age or financial status, LTC Tree can help you find a plan that is right for you. If you’d like to learn more about our affordable long-term care insurance policies, simply fill in this form. Thanks for reading today’s blog. We really appreciate it.
