Are You Prepared for Long-term Care?

The costs of a nursing facility can be devastating to your retirement; here’s how to stay protected

It might be difficult to imagine at this moment, but someday, you’ll need some help taking care of yourself. This might be as simple as in-home assistance for things like medication and food preparation. Or it could mean an extended stay in a nursing home or assisted living facility.

According to current statistics, about 70% of today’s 65-year-olds will require some form of long-term care. If those sound like good odds to you, congratulations, please don’t join us in Vegas. Even with a 30% chance of coming through unscathed, the potential losses are incredible.

According to Genworth’s Cost of Care Survey, nursing homes these days are running at about $250 per day. What’s the over/under on whether that number is going to keep going up?

So You Think You Won’t Need Long-term Care?

A Long-term Care (LTC) policy can greatly reduce the financial burden that will be placed on your family. If you purchase it early enough, it can eliminate the burden altogether. In fact, it can even increase the chances that you will get to stay at home during your care.  

Remember, crisis management is for people who have not made a good enough plan. By working with your Personal Benefits Manager to formulate a strategy, you’ll never have to worry about long-term care, even if you develop a sudden or unexpected disability.

The Frightening Costs of Assisted Living

When we mentioned above that nursing homes are about $250 per day, we might have also mentioned that this is the cost for a ­semi-private room. How are you going to feel about being forced to share an apartment amid an illness or disability?

As any human being with a beating heart, you’d probably rather keep living at home. Long-term care insurance pays out a per-day benefit for at-home care. Having an LTC policy in place will greatly increase the chance that you won’t have to move into a care facility.  

More importantly, it will make sure that the care you need doesn’t completely empty your retirement account.

Medicare Only Goes So Far

Medicare is great, but it only goes so far in situations like these. While Medicare covers all necessary medical care, it does not pay for most long-term services. Medicare does pay for post-hospitalization care, but there are strict limits on how long it will pay.

If you become ill, injured, or develop a disability that requires skilled care, Medicare is only going to help for a few months at best. Who is going to take care of you after that? Your family? What is that going to do to their bank accounts … their plans and dreams?

Q: When Is the Best Time to Get Long-term Care Coverage?

If you are at or around 50 years of age, it is the perfect time to sign up for a Long-term Care policy. By signing up this early, you are guaranteeing a good rate and a guaranteed payout. The longer the wait, the higher the premiums are going to become.

In fact, once you hit your 60s, long-term care coverage starts to become much, much more expensive.

Long Term Planning Is Step 4 of the Financial Protection Program

If there’s one thing we’re dedicated to above all else, it’s saving our people money on health care. The absolute easiest way for us to do that is by helping our clients forge thoughtful, strategic plans. As a member of HSA for America, you have unique access to our full-service Financial Protection Program.

Step 4 of this program is developing a plan for Long-term Medical Costs.

Call Your Personal Benefits Manager to Make a Plan

If you are around 50, or if you have parents or loved ones who might need LTC coverage, call us. Our expert Personal Benefits Managers can assist you and your family in identifying affordable options for long-term health care.

Our primary goal is to get these potential costs covered today, instead of leaving them for later. Believe us … your retirement account is going to thank you for it.

Click here to schedule an appointment, or call 800-913-0172 to get started.    

To your health and wealth,

Wiley P. Long, III
President - HSA for America

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