Ignoring Long-Term Care Insurance with Recession Talk

By Steve Elliott | August 29, 2022 | Comments Off on Ignoring Long-Term Care Insurance with Recession Talk

As talk about a potential recession ramping up, a lot of people with retirement investments, savings, and those in their mid-to-late 50s are worried about the future, perhaps much more than those in their 20s or 30s. Long-term care is something people in their 20s and 30s probably never even think about unless a loved one — like a grandparent or great-grandparent — is dealing with those conditions and they are supporting them in some way. Their long-term care insurance premiums also enter the equation.

Long-Term Care Insurance Premiums Rancho Penasquitos CA - Ignoring Long-Term Care Insurance with Recession Talk

Long-Term Care Insurance Premiums Rancho Penasquitos CA – Ignoring Long-Term Care Insurance with Recession Talk

However, as people get older and approach retirement age, it’s a topic they need to seriously contemplate. No, people don’t envision themselves requiring some type of long-term care. However, every one of us knows we are mortal. We will all die. However, not all of us will require some type of long-term care.

Yet, when you look at the numbers and you see the reality of the situation with people living longer than ever, you start to understand that long-term care becomes an increasing possibility with age.

Even though the average life expectancy for men has diminished slightly from its high a couple of decades ago and, for women has remained the same, once a person reaches 65, life expectancy actually increases. When a person is 70, their likelihood of reaching 80 is much higher than for somebody who is 20 and reaching 80. It’s a weird dynamic, but one that highlights the fact that the older people get the more health issues they likely face.

How much can long-term care cost?

That’s the big question. There are many factors that go into determining the cost of different types of long-term care. For somebody who turns to senior home care, for example, an aide who can support them and help with a variety of daily tasks, they might not need them for full-time care.

If that’s the case, they may only require some help for a couple of hours once or twice a week. That would be far more affordable than somebody who needed full-time or around-the-clock care.

If somebody needed full-time in-home care, they might be looking to spend $45,000 to $50,000 annually, for example.

However, if somebody were looking at a nursing home, the national average is already over $85,000. In some states, like Alaska, you’re looking at well over $300,000 per year for nursing home care.

How long could your savings and retirement accounts support that?

Just because we may be entering a recession, and one that could be deep and painful for many people, that doesn’t mean you can ignore the future. Yes, you may have retirement savings and investments, a pension, and other assets that could be hurt in the next couple of years, but how much more could having to pay for a nursing home out of your own pocket hurt?

Don’t expect Medicare to cover those expenses because it won’t until you or your spouse or other dependents have used all your available assets and savings. Oftentimes, that includes the equity you may have built up in your primary residence.

Long-term care insurance and paying long-term care insurance premiums can help you protect those savings well into the future, no matter what’s happening with the economy today.

If you or a loved one are considering Long-Term Care Insurance Premiums in Rancho Penasquitos 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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