If You Ever Need Long-Term Care, How Will You Afford It?

By Steve Elliott | July 5, 2023 | Comments Off on If You Ever Need Long-Term Care, How Will You Afford It?

When was the last time you thought about the prospect of needing long-term care in your future? Have you considered getting a long-term care insurance quote for coverage of such an event? If you are in your 30s, 40s, or 50s, you probably never even pondered this question. Even if you had an aging parent or grandparent who just went through a lengthy stay at a nursing home or has been living at assisted living for quite some time, you won’t tend to think about needing that for yourself.

Long-Term Care Insurance Quote Rancho Bernardo CA - If You Ever Need Long-Term Care, How Will You Afford It?

Long-Term Care Insurance Quote Rancho Bernardo CA – If You Ever Need Long-Term Care, How Will You Afford It?

Yes, we all recognize that we are mortal and one day we will die. However, very few of us as Americans think about what would happen if we needed long-term care in the future.

Most people don’t even realize how much long-term care costs right now, much less what it will cost in 10 or 20, or 30 years. Inflation has been skyrocketing, and even if the Federal Reserve manages to keep it down for a while, prices increase. There are many factors for rising prices, not the least of which involves basic inflation.

With long-term care, though, you have supply and demand economics placing more pressure on the system. As the baby boomer generation retires, there’s a greater demand for long-term care. Greater demand means higher prices. Add into the mix a struggle among many long-term care providers to attract and keep qualified staff.

Now, understanding this at a basic level, you can realize why long-term care costs will continue to climb, probably even outpacing inflation, at least for the next 10 or 15 years. How would you afford it?

“Medicaid will cover it, won’t it?”

This is one of the most common statements people in their middle age years or even as seniors state. They assume the federal government is going to cover their long-term care expenses.

Sure, it will. Maybe.

But here’s the catch: Medicaid only covers long-term care expenses after the senior has exhausted all of their available assets and savings to pay for it first. Yes, that means you could completely wipe out your savings, tap into all of the equity in your home, and use up the investments you have in a 401(k). All that before Medicaid starts covering those expenses.

Plus, something many people don’t realize until it’s too late, Medicaid only covers nursing home care in most states. Only a handful of states provide options beyond nursing home care. So, if you are one of those people who is expecting the government to cover your long-term care expenses, you will pay for it first, and your only option will be nursing home care.

What if you prefer a different type of elder care?

There are other elder care options, including assisted living and in-home care. Maybe you could afford it for several months or even a year or two. Depending on where you live, you might have to pay several hundred thousand dollars a year out-of-pocket.

Now, are you wondering how you might pay for it in those golden years of life? If so, long-term care insurance is something you should look into now, and getting a long-term care insurance quote could affect your decision. If you are in your late 40s or early to mid-50s, this is the time to start looking at beginning a long-term care insurance policy.

If you or a loved one are considering Long-Term Care Insurance Quote in Rancho Bernardo 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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