Long-Term Insurance Cost – What to Expect

By Steve Elliott | January 24, 2022 | Comments Off on Long-Term Insurance Cost – What to Expect

A common question a lot of people, when planning for retirement, have when they first encounter the prospect of long-term care insurance is how much it will cost. January is Financial Wellness Month and for somebody who is saving diligently for retirement, they don’t want to throw away money, especially on an insurance they may not think is completely necessary. Knowing ahead of time what long-term care insurance cost will be, makes for good planning.

Is this insurance necessary?

Long-Term Care Insurance Cost Encinitas CA - Long-Term Insurance Cost - What to Expect

Long-Term Care Insurance Cost Encinitas CA – Long-Term Insurance Cost – What to Expect

First, let’s tackle the critical question here: will you ever require long-term care? It’s easy to say no, but as people age, there is an increasing likelihood they or their spouse or other dependent might need some type of long-term care in the future.

Sure, you may be in perfect health in your 40’s or 50’s right now, have little to no family history of serious medical issues, and don’t foresee any possibility of requiring long-term care, but nobody knows what tomorrow will bring, much less 10 or 20 years from now.

If you are right around the sweet spot for starting a long-term care insurance policy (which is around 55), then odds are you wouldn’t need any type of long-term care for at least another 10 or 20 years, right? Yet, anything can happen tomorrow. You could be on your way to work and be broadsided at an intersection by somebody not paying attention to the road but rather their phone or in a hurry and trying to get through the light, even though you had the green and they were red.

You could be rushing down the stairs running late for an important meeting, slip, and break your hip along with several other bones. You could even suffer a heart attack or stroke. Recovery could take months, maybe even years.

That would require long-term care and no, most primary health insurance policies will not cover long-term care expenses. They may cover some short-term care expenses, but not long-term care. Medicaid is also unlikely to cover those expenses unless you are at least beyond retirement age and have used up all of your available assets, which can include the equity you have in a home.

How much could long-term care cost?

That depends on where you live and the type of long-term care you’re talking about. The average cost of in-home care for full-time assistance is around $45,000 to $55,000 annually. Assisted living can cost anywhere over $75,000, on average. Nursing home care costs can be $85,000, on average.

That’s an average, though. Take Alaska, for example, where you could spend more than $300,000 in one year for nursing home care. When people see those numbers, their jaw often drops open in shock.

Can you afford to have saved your entire life for your perfect golden years, your retirement, where you might travel, pursue new interests and hobbies, and enjoy life but suddenly find yourself spending that money just for long-term care?

There are a lot of factors that go into determining the long-term care insurance cost of the  policy, including your age, health, family history, location, and much more. The cost of the policy will depend on when you start it (such as, for example, beginning at 45 instead of 55 or 65) and so forth.

The best thing you can do is contact a qualified, experienced broker or agent and go over the details today.

If you or a loved-one are considering Long-Term Care Insurance Cost in Encinitas CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today (858) 350-3161.

Steve Elliott
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