The expenses for nursing homes, assisted living facilities, and home care services have become quite steep nowadays. Actually, statistics indicate that the typical nursing home costs seniors a significant amount. from $8,600 to $9,700 per month . Unless you have long-term care insurance , those costs can eat into your retirement funds and nest egg quickly.
Neal Shah, the founder of the caregiving service CareYaya, explains that long-term care insurance aids in covering the extremely high expenses associated with at-home assistance, supported living facilities, or residential nursing homes, which often exceed $50,000 annually. He adds that having an adequate long-term care plan allows older adults to safeguard their wealth and guarantee they receive necessary support without facing financial ruin.
But while long-term care insurance can help cover the costs of this type of care, long-term care policy premiums also increase as you age, so at what point is buying a policy no longer worth it? Once you hit 70 , do the benefits still outweigh the cost ? Let's find out.
Browse through various long-term care insurance policies online at your convenience today. .
Does long-term care insurance make sense for people in their 70s? Professionals share their insights.
This is when specialists indicate that a long-term care insurance policy could be beneficial for individuals in their 70s.
Long-term care insurance may prove beneficial for individuals in their 70s as they advance in age.
Long-term care insurance might be worth it If you remain in good health, since these policies involve medical underwriting. Additionally, they might be worthwhile if your aim is to ensure financial security for your loved ones as you advance in years.
According to Larry Nisenson, the chief growth officer at Assured Allies, more than half of elderly individuals will probably require some form of caregiving assistance. He notes that a long-term care insurance policy can alleviate both the financial and emotional strain on families by supplying funds for hiring professional caretakers.
If you rely solely on Medicare To cover the expenses related to your care, purchasing a long-term care insurance policy can also be wise, according to Esther Cromwell, the founder of Avendelle Assisted Living.
Cromwell states that since Medicare covers only a few parts of long-term care, this insurance is essential for ensuring a secure and stress-free future. It shields both elderly individuals and their families from bearing significant financial costs.
Discover how an appropriate long-term care insurance policy might advantage you today. .
Long-term care insurance may not be beneficial for individuals in their 70s.
Long-term care insurance premiums The price increases with age, so purchasing a policy in your 70s may be more expensive compared to what it might have been when you were younger.
Shah mentions, "Long-term care insurance tends to come with significant costs," particularly noting this becomes more pronounced for individuals who acquire such policies at an advanced age.
If you possess ample funds to handle future care expenses, purchasing long-term care insurance might not justify the cost. As per Bill Bunting, COO of Avendelle Assisted Living, residents at his facility utilize an array of financial resources including Social Security benefits, pensions, investments, retirement accounts, personal savings, and 401(k) plans to finance their needs. Additionally, many older adults rely on earnings from property or business sales to support such requirements.
Bunting states that the elderly have made preparations for their retirement.
If you have relatives with sufficient funds to provide for your needs or can take care of you personally, you might not need a long-term care insurance policy. Actually, you could be required to forego it if you're in bad health or suffering from a serious illness.
"Once an individual receives a serious diagnosis that might result in prolonged care requirements, it is typically far too late to buy the insurance," explains Mark Baron, who owns Baron Long-Term Care Insurance.
The bottom line
To reduce those significant expenses, explore different options and contrast multiple offers. long-term care insurance companies Before removing your policy, consider exploring other options for safeguarding yourself against potential long-term healthcare expenses. Some life insurance policies provide additional coverage that may be worth looking into. long-term care benefits or add-ons These can cover your expenses for long-term care, or if you don't require such care, they provide those benefits to your beneficiaries after your passing. Certain annuities also come with comparable advantages.
If you're thinking about any of these options, it would be wise to investigate them prior to submitting an application for a long-term care insurance policy. As stated by the American Association for Long-term Care Insurance, almost fifty percent of all applicants aged between 70 and 74 do so. are refused long-term care insurance policies These refusals can lead to difficulties in obtaining approval for other financial products, such as life insurance or annuities, according to Baron.
If an individual is turned down, they might miss out on opportunities for other products," Baron explains. "Certain plans will automatically reject them for a minimum of one year if they were denied long-term care coverage somewhere else.
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