And, if you want some privacy, the median cost is $7,148 for a semi-private room at a nursing home and $8,121 for a private room. That’s expensive! Can you afford it? These alarming figures should get you thinking. If you don’t think about the possibility that you may require some form of long-term care services—either a home health aide, an assisted living facility, or a nursing home—then you run the risk of wiping out your entire life’s savings to pay for it, even if it’s only a short period of time when you or a spouse needs such care.
So, how do you avoid that? One option is to purchase long-term care insurance (LTCi) through a reputable broker or agent. LTC insurance policies typically provide coverage in these situations:
- Home care
- Assisted living facilities
- Nursing homes
- Adult day care
- Hospice care
However, getting a policy isn’t as easy as it may at first appear. LTC policies can vary quite a bit, based on factors like the insurer, area of the country, and your health status. Find out what benefits will be provided and for what duration. You should also determine the tax implications of your circumstances. Finally, your out-of-pocket cost is a big factor. It’s best to investigate an LTC insurance policy sooner versus later because the cost of coverage will only go up as you get older.
Reference: Wealth Advisor (February 16, 2018) “Have Clients Planned For Long-Term Care?”