According to a report by Kiplinger, 70 percent of us who are fortunate enough to reach the age of 65 will need some type of long-term care. Whether it is an accident, illness or chronic condition like osteoarthritis or Alzheimer’s, something will occur so that we need to rely on others for help.
Unfortunately, families carry a big burden of the cost of long-term care. A whopping $450 billion worth of unpaid care-giving is estimated to be doled out by family members. Often this occurs when they are trying to raise families and build their own retirement nest egg.
Medicare and MediCal provide only limited Long Term Care coverage. With Medicare you must have had a 3-day hospital stay to be admitted to a Skilled Nursing Facility. After that, you better be on the mend, because once you are no longer improving, you will be sent home. With MediCal you have to Spend Down your assets to qualify, and for many this just isn’t a palpable way to go into their Golden Years.
If you think Long Term Care is expensive, think of the alternative. With Skilled Nursing Facility Costs around $80,000 a year, how long would your assets last, and what would the quality of your life be if something were to happen to you? Many people with LTC Plans get care in their homes since most policies now provide that option. Assisted living facilities are more abundant now, providing a social atmosphere along with health-care providers for those who need only basic needs. Skilled Nursing Facilities are for those who are truly incapacitated and/or need constant supervision or medical attention.
Want more reasons to plan for LTC. Peace of mind. Knowing that you have a plan in place that would not burden your family, protect your hard-earned assets, and allow you to choose when and where you receive your care would be an invaluable gift to you and those you love.