Long Term Care: Should You Be Insured?
As the first wave of baby boomers reaches retirement age they are a generation facing retirement better prepared than their parents. The boomers are likely to redefine “retirement” much as they redefined everything about the last four decades. But have they really prepared as well for retirement and for their healthcare needs in the later years as they think they have?
Early retirees know about gap insurance, and how to obtain such low cost medical insurance that provides temporary health insurance coverage until Medicare benefits kick in at 65. The better-educated boomer population also realizes that Medicare probably will not cover all of their healthcare requirements for the rest of their lives. So again many have understood the need to look into supplemental health insurance. One area that retirees often miss is how to pay for long-term care, which can be a costly mistake. A recent study found that 7 out of 10 people between the ages of 60 –85 will experience a life altering health event that can require long-term convalescent care. With the average cost for a stay in a nursing home over $70,000 per year, health insurance experts and financial planers agree the time to think about long-term care and how you will pay for it is now. Long term healthcare insurance is a practical solution, and a wise investment. Health insurance experts agree that having a long-term care policy is as important as life insurance. David Schubbe of Minneapolis, Minnesota would certainly agree.
A few years ago, David noticed that his wife Kristi, only 61 years old at the time was becoming increasingly forgetful. She was having trouble with routine tasks and was soon diagnosed with Alzheimer’s. David knew the best place for her was an area facility that specialized in caring for people with the disorder. He wanted Kristi there and despite the $5,400 a month price tag, was able to place her there thanks to a long-term care health insurance policy the Schubbe’s purchased some years earlier. Health insurance experts are quick to point out that it does not take a devastating illness like Alzheimer’s or stroke to require long-term care. For the elderly, a slip and a broken hip can require months of convalescent care and rehabilitation that is not covered by Medicare or most supplemental health insurance policies.
For the piece of mind it can bring, long term care is very affordable health insurance. Long-term care insurance policies with good benefits can be purchased for as little as $250 per month. As with all health insurance products, the earlier you buy it, and the better health you are in when you purchase the plan, the more affordable medical coverage it will be. Experts say people in their 40’s should think about long-term care, and financial advisors say you should have a plan in place to protect your assets, including how you will handle long term care, by the age of 55.
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