I’m Giri Lankipalle – A Financial Services Professional based in California.
My Message
Statistics indicate a 70% chance that individuals aged 65+ in the US will require long-term care. This includes age-related, health-related, critical illness, and accident-related needs. Notably, Medicare doesn’t cover long-term care beyond 90 days, leaving individuals to deplete assets to cover significant expenses. In-home care averages $60,000/year, while nursing home care costs around $110,000/year.
Having a long-term care plan provides peace of mind, asset protection, and a legacy for children. Long-term care planning is complex and costly, demanding careful consideration. By addressing this crucial aspect of retirement planning, individuals can safeguard their future, ensuring quality care and financial stability throughout their later years.
70% of people over 65 will need long-term care at some point in their lives.
Traditional long-term care insurance
Long-term care insurance, in its traditional form, offers coverage for expenses related to long-term care, including services like home health care and assisted living. Similar to home and auto insurance, you pay regular premiums and file claims when necessary. However, unlike some other types of insurance, if you never require long-term care services, you won’t receive reimbursement for the premiums you’ve paid.
Hybrid long-term care insurance
A hybrid long-term care policy combines long-term care insurance with a traditional life insurance policy. This setup ensures coverage for your long-term care needs if they arise, or it provides a death benefit to your heirs if you don’t require long-term care. Moreover, it’s prudent to assess your family’s health history and seek advice from your doctor regarding the probability of needing long-term care.
Long-term care insurance via a life insurance rider
Another viable choice to explore is a universal life insurance policy with a long-term care rider. A rider serves as an additional feature to enhance and broaden your insurance coverage. Integrating a long-term care insurance rider enables you to utilize a segment of the policy’s death benefit to cover your care expenses during your senior years.
The bottom line
As per data from the U.S. Department of Health & Human Services, 70% of individuals aged 65 or older will require some type of long-term support during their lifetimes. However, according to LIMRA, only 3.1% of Americans possess long-term care insurance. Considering these statistics, evaluating your long-term care requirements and available options could prove to be a prudent decision