If you don't have long-term care insurance, you're not alone. Many of my clients haven't thought about the kind of care they'll need as they age, let alone how to pay for it. If the reasons below sound familiar, I'd love to help you and your family make a plan that gives you peace of mind.
Reason #1: I won't need long-term care.
The uncomfortable truth is that you probably will. Someone turning 65 today has almost a 70% change of needing long-term care at some point, according to the Genworth 2019 Cost of Care survey. Don't let unexpected healthcare costs drain your retirement account. You worked hard and saved for years so you could enjoy retirement, and maybe even leave some money for your family or to charity. Long-term care insurance can help protect what you've worked hard for all your life.
Reason #2: I don't want to think about this. It's too uncomfortable.
Yes, it is. No one can deny that. But avoiding the topic doesn't make it go away. And just because you talk about it doesn't mean it will happen. Once you've discussed it and made your plan, you don't have to think about it any more. You won't have that nagging feeling at the back of your head, asking, "What if?" Planning now gives you and your family more options later.
Reason #3: I don't understand what's covered by Medicare, Medicaid, and long-term care insurance.
In most cases, Medicare will not cover long-term care. Unless your care is part of recovery from an illness or operation, Medicare will not authorize those expenses. Medicaid, a state-run program, is designed to help low-income individuals. If you have qualified assets less than $2,000 and an annual income near the federal poverty line, you may qualify. Some states also require a five-year look-back on assets, to make sure you didn't sell off assets just to qualify for Medicaid assistance. Essentially, there is no form of federal long term care insurance. That might not seem so bad, until you look at what those costs can be. This chart shows the average yearly cost for different long-term care services, according to Genworth's 2019 Cost of Care Survey:
|Home Health Care||Adult Day Care||Assisted Living||Nursing Home
Reason #4: I don't trust that the insurance company will be there when I need them.
I only work with insurers who have proven track records in terms of paying their claims. One of the companies I do business with has paid $6.7 billion in long-term care claims since 1974. I can show you the history of claims paid for a number of reputable companies that will help set your mind at ease.
Your family is the best reason of all to make a plan for long-term care. It removes stress, uncertainty, and financial worry. I can help give your family that peace of mind.