Almost 70% of people turning 65 will need long-term care at some point in their lives, and could potentially be faced with devastating expenses if they are not financially prepared.
Unfortunately, many people fail to prepare because they rest under the common assumption that long-term care services will be covered by Medicare. Although Medicare will generally provide coverage for long-term care if you require skilled services or rehabilitative care, it does not pay for non-skilled assistance for Activities of Daily Living (ADL), which is the most common type of long-term care service needed. With the average annual cost for nursing room care exceeding $80,000, long-term care insurance may be an important option for you to consider as a part of your retirement strategy.
How long-term care insurance works:
Long-term care insurance policies reimburse policyholders a daily or monthly amount for services to assist them with the six activities of daily living (ADL). You can choose from a variety of coverage and benefit options, and create a customized policy to best meet your goals and budget:
Choose a benefit amount
You choose how much you would like the policy to pay out per day or per month
Choose a waiting period
You choose how the long you will wait before the policy starts paying any benefits
Choose a benefit period
You chose how long the policy will pay out benefits