Long-Term Care Planning
Long-Term Care (LTC) Insurance
You're working hard to live the life you want as you save for retirement. Long-term care insurance can help you protect your lifestyle in retirement.
In general, about 70 percent of people 65 and older will need help with day-to-day activities, like getting dressed or going to the doctor. However, most health insurance policies do not cover this type of care. Many disability insurance policies also do not cover this type of care. About half of people who need long-term care can’t afford it. Long-term care (LTC) insurance could be helpful in these cases. It may also be a good idea to buy long-term care insurance while you’re still healthy, since your situation may change if your health declines.
Costs of LTC
Depending on where you live and the type of care you need, long-term care costs may vary. Without insurance, long-term care costs can quickly mount. According to the Alzheimer’s Association, 66 billion dollars was spent on out-of-pocket healthcare by people with dementia or Alzheimer’s in 2019. That doesn’t take into account costs not reported. Also, Medicare doesn’t cover all medical costs. You might not be able to receive other care assistance even if you have health insurance.
Long-term care insurance, on the other hand, can be affordable. In general, people begin reducing monthly long-term care costs around the age of 50, but some begin earlier. Additionally, some retirees have other insurances that may impact their eligibility for long-term care. Our team at Retirement Planners of Texas, Inc. can assist with reviewing your options.
The Benefits Of Long-Term Care Insurance
Besides the high costs, there are other reasons to consider long-term care insurance. One of them is protecting your savings for retirement. Nursing homes, home care, and assisted living can easily consume your income. Unfortunately, many retirees lose the money they earned over their lifetime. We can help you protect your health and wealth long-term in retirement.
Alternatives to Long Term Care Insurance
Other options may be available to you besides an LTC-only policy. For example, some permanent life insurance policies cover long-term care. Furthermore, certain annuities may also give you income protection if you end up needing long-term care. Some annuities include LTC riders. These insurance policies can be used to access long-term care funding earlier. Critical illness and critical care life insurance are also available.
If you cannot perform basic everyday tasks on your own, you may need long-term care. As you grow older, you might want to consider how you would handle a long-term care event. Connect with us to help you protect your standard of living in retirement.