Do you want to age with dignity in your own home? Long-term care does not mean you have to leave the comfort of your own home to receive care in a home. In fact, long-term care insurance provides the funding that enables you to stay in your own home and receive high-level of care. It is important to address the potential threat of rising health care costs when aging as it is the greatest threat to retirement strategies. The U.S. Department of Health and Human Services estimates that 70% of people over age 65 can expect to need long-term care services at some point in their lives.1 So understanding the various types of long-term care services – and what those services may cost – is critical as you consider your retirement approach.
Long-term care is not a single activity. It refers to a variety of medical and non–medical services needed by those who have a chronic illness or disability – most commonly associated with aging.
Long-term care can include everything from assistance with activities of daily living – help dressing, bathing, using the bathroom, or even driving to the store – to more intensive therapeutic and medical care requiring the services of skilled medical personnel.
Long-term care may be provided at home, at a community center, in an assisted living facility, or in a skilled nursing home. And long-term care is not exclusively for the elderly; it is possible to need long-term care at any age.
Long-term care costs vary state by state and region by region. The 2018 national average for care in a skilled care facility (single occupancy in a nursing home) is $100,380 a year. The national average for care in an assisted living center (single occupancy) is $48,000 a year. Home health aides cost a median $22 per hour, but that rate may increase when a licensed nurse is required.2
Often, long-term care is provided by family and friends. Providing care can be a burden, however, and the need for assistance tends to increase with age.1
Individuals who would rather not burden their family and friends have two main options for covering the cost of long-term care: they can choose to self-insure or they can purchase long-term care insurance.
Many self-insure by default – simply because they haven’t made other arrangements. Those who self-insure may depend on personal savings and investments to fund any long-term care needs. The other approach is to consider purchasing long-term care insurance, which can cover all levels of care, from skilled care to custodial care to in-home assistance.
When it comes to addressing your long-term care needs, many look to select a strategy that may help them protect assets, preserve dignity, and maintain independence. If those concepts are important to you, consider your approach for long-term care.
If you are concerned how you will manage health care risk, contact email@example.com for a free consultation today!
Source: National Alliance for Caregiving in collaboration with AARP, 2015 (most recent data available)
1. U.S. Department of Health and Human Services, 20192. Genworth 2018 Cost of Care Survey
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