It is estimated that roughly 70 percent of people turning 65 will need some type…
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Tips for Long-Term Care as Rates Rise
When considering retirement plans, long-term care coverage shouldn’t be overlooked. The cost of long-term care is exorbitant — figures from 2010 estimated that a semi-private room in a nursing home can cost more than $6,200 per month, with private rooms costing over $6,900. An assisted living facility in 2010 could cost as much as $3,300 per month. And those rates are only going up in the future. Seniors without long-term care insurance are left paying these high monthly bills out of pocket, often depleting their retirement savings, which took decades to build, within only a few years.
To paint an even grimmer picture, long-term care insurance premiums are also rising rapidly, with an 8.6% increase between 2014 and 2015. The important thing these figures indicate is that choosing long-term care coverage should be a primary concern in your overall retirement plan.
Tips For Finding The Best Long-Term Care Insurance
- Have Open Lines of Communication with Family. The first step prior to making any decisions on long-term care is to have an open, honest discussion with family members. Some people would prefer not to ever use long-term care or assisted living facilities and these preferences should be ironed out prior to planning for retirement. Other considerations might include family members and spouses as it pertains to their financial situation in the event of long-term illness.
- Review Your Assets to Determine Coverage Needs. In many situations, trying to offset the entire cost of long-term care isn’t necessary and can mean a costly premium. Taking an honest look at finances and assets can help determine how much long-term care coverage is needed to complement savings and retirement funds.
- Consider the Timing of When You Purchase. There are specific times of year when purchasing insurance plans can be less costly, so it helps to do some research on timing. Another thing to consider when purchasing a long-term care policy is the age of the policyholder — often buying in the mid-fifties is ideal.
- Look at Your Employer Benefits. Many employers offer long-term care coverage as part of their benefits packages. Employees should examine these policies and be sure of what they cover, and if they can be continued after retirement or termination.
Through Member Benefits Insurance Programs, participants are given complete and unbiased information on all of the insurance plans available, and recommendations are made to fit your monthly budget and financial portfolio. Our experts can help guide you in specifics such as how much coverage is needed as well as the right time to purchase. Click here to request a free quote and consultation for Long Term Care Insurance.