Long-Term Care
Not everyone has savings to cover the cost of nursing-home care, home-health care, or personal or adult care for people ages 65 and up. Some people fear facing a debilitating or chronic condition in retirement that depletes their savings and affects their legacy plans for their family.
One option these people might have is “long-term care” insurance. Such policies offer more flexibility and options than public state or federal programs in the U.S.¹ People who have long-term care insurance, sometimes known as LTC insurance, have options when it comes to covering the high cost of this kind of facilities.
Nursing facilities charge, on average, $150 to $300 a day, or $80,000 a year.¹ Three visits per week from custodial or home care visits can run more than $9,000 a year.¹ Many LTC policies offer a dollar-per-day arrangement for time spent in a nursing facility (or for in-home visits). Professionals often suggest shopping for LTC insurance between the ages of 45 and 55. This is a strategy to attempt to defray those costs in retirement.
There may be tax deductible elements, business deductions, or other benefits to having LTC insurance as part of your comprehensive retirement income plan. You might not have to rely on your children for money, for example. You can’t know what will apply to your situation unless you speak with a financial adviser.
¹ Julia Kagan, “Long-Term Care (LTC) Insurance,” Investopedia, accessed March 9, 2020, https://www.investopedia.com/terms/l/ltcinsurance.asp.
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The insurance professional can provide information, but not advice related to social security benefits. The insurance professional may be able to identify potential retirement income gaps and may introduce insurance products, such as an annuity, as a potential solution. For more information, contact the Social Security Administration office, or visit www.ssa.gov.