Insurance is More Valuable with Rising Long-Term Care Costs

By Steve Elliott | August 14, 2023 | Comments Off on Insurance is More Valuable with Rising Long-Term Care Costs

The cost of living continues to skyrocket. Even though it seems as though the worst of inflation is well behind us, if you are one of the tens of millions of Americans paying attention, you’ve noticed the price of many goods has continued to climb steadily, even over this past year. It isn’t just grocery costs that are rising. It’s just about everything else, including electricity, fuel to heat a home and entertainment. It’s also the cost of long-term care. Paying the long-term care insurance premiums now may help to defer some or all of your long-term care expenses in the future.

What types of elder care are there?

Long-Term Care Insurance Premiums Encinitas CA - Insurance is More Valuable with Rising Long-Term Care Costs

Long-Term Care Insurance Premiums Encinitas CA – Insurance is More Valuable with Rising Long-Term Care Costs

Long-term care isn’t necessarily just for aging men and women, but the vast majority of people who depend on long-term care services are elderly. There are a number of different types of elder care out there, including assisted living, in-home care, and nursing home care.

Before the pandemic, depending on where you live you might be looking at staggering costs for long-term care. For example, in Alaska, the average cost of a nursing home for one year is over $300,000.
Could you afford that? Most Americans couldn’t afford even a few months in a nursing home out of their own bank account or pocket. Of course, that is an extreme example, but it highlights the importance of being prepared for the rising costs of long-term care.

How can you protect yourself against the rising costs of long-term care?

With insurance. Unfortunately, few people actually think about long-term care or the costs associated with it when they are in their 30s, 40s, or 50s. In fact, you will find very few people in their 60s who have even thought about long-term care for themselves or their spouse or other dependents.

It’s just not something people who are fit, young(er), and healthy or even contemplate unless somebody they love, like an aging parent or grandparent, needs it. Even still, when these men and women see the cost of long-term care for a loved one, they don’t associate it with themselves.

What might happen if you need long-term care 15 years from now?

Most people will immediately assume their health insurance or Medicaid or Social Security payments are going to cover it. Most health insurance policies only cover short-term care, not long-term. Medicaid only covers one type of long-term care in most states, and that is nursing home care, and only after a person has exhausted all of their assets and savings. That can include the equity in your home.

Would you be able to afford even $100,000 for one year of long-term care? If so, then there’s nothing else to discuss here. You can go about your merry way and hope for the best. Most people would have to tap into their 401(k), a pension, or other investment, bringing on heavy penalties for doing so, and cutting into the finances they expected to have in the future.

Plus, we keep hearing that Social Security is going to be out of money by then. What happens and then? Secure a long-term care insurance policy so you don’t have to worry about how to pay for long-term care when either you or your spouse or other dependent needs it in the future.

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

Steve Elliott
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