As the baby boomer generation continues to march toward retirement, the American population is aging. Referred to as the “greying of America”, experts tell us that by the year 2055, 20 percent of the U.S. population will be over age 65. Moreover, Americans are living longer thanks to advances in medicine and a better quality of life enjoyed by those living in the U.S. The cost, in terms of dollars and cents, of living longer though can be high. Are you covered if you need long-term care at some point in the future?
The cost for a stay in a nursing home facility or other long-term care facility can be high enough to put a serious dent in even a well thought out retirement plan. As of 2011, the average stay for a semi-private room at a nursing home ran almost $75,000 a year. While programs such as Medicare or Veteran’s Administration assistance may cover some of the cost of long-term care if you qualify, they will typically not cove r all of it.
One option that may help you plan for the possibility of long-term care costs is purchasing long-term care insurance. These policies work in much the same way as medical insurance; however, they focus on covering the costs of long-term care. If you decide to consider purchasing long-term care insurance, be sure that you sit down with your estate planning attorney and go over the plan details. Although long-term care insurance can be an excellent addition to your estate plan, you need to be sure that you understand what the policy covers, when the policy will actually kick in, and what the limits of coverage are.
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