Retirement is something we all look forward to. With the excitement of starting this new chapter, retirees are facing an almost inevitable financial burden of long term care. Insurance premiums covering such care can be somewhat exorbitant. For this reason, advisors are providing alternative options to those preparing to retire. Medicare does not typically cover long term care, so advisors suggest that you purchase your own insurance to offset the cost of long term care. Other options could include depending on family members for financial support or decreasing your assets to be able to qualify for a Medicaid approved living situation. Hybrid policies combining life and long term care coverage are also options for retirees.
Key Takeaways:
- We live in a country where our lives are often prolonged, but most of us are unprepared for the long-term care costs that go along with our extensive lifespan.
- Long-term care costs for those in need can be quite expensive, with assisted living facilities requiring $48,000 per person each year.
- Advisors should sit down and truly analyze the possibility of each client needing this type of long-term care in the future to better prepare them financially.
“Someone turning 65 today faces a nearly 70% chance of needing LTC services during their remaining years”
