Long-term care risk
At least 70 percent of people 2.1 out of 3 over age 65 will need some form of long-term care services and support during their lifetime, according to the U.S. government. That includes an estimated 58 percent of woman and 44 percent of men who, according to a 2014 report by the Center for Retirement Research, will require nursing home care at or after age 65 with the average stay being 36 months and with the cost of long-term care increasing steadily it is becoming more important to plan for situation that could force you to lose all your assets a lifetime of savings in a blink of an eye.
For example, according to a 2014 study by Genworth Insurance, the national median monthly rate for assisted living is $3,622 or $43,472 per year, but wait take a look at the costs for semi-private $91,250 and private nursing home care $102,049. Given this reality, it’s really helpful to have some kind of long-term care insurance.
But what kind? Effectively there are two types;
- traditional long-term care insurance,
- hybrid or asset-based products that deliver a measure of long-term care protection by being paired with an annuity or life insurance policy.
Traditional long-term care insurance products have become more expensive and a little less generous with their benefits, so it makes sense to consider the alternatives. Whatever the chosen mode, traditional or hybrid it’s a good kind of insurance to have. For those retirees who do have it, that’s one less risk to worry about.
Take into account President Ronald Reagan who after being diagnosed with Alzheimer’s and slowly degenerating and eventually needing to have 24 hours of around the clock nursing care his family was forced to sell his beloved California ranch to fund this Long-Term-Care medical expense. If a 2-term President of the United States of America had to sell assets, then this situation can happen to anyone including you the reader.
Don’t wait until it is too late, call Thomas & Associates (800) 940-3900 or (904) 730-3900 to create a plan that will meet your Current Budget and Future Needs.