Most of us do not prepare for getting old. A particular area of inattention is the cost of long-term care. The majority of Americans will at some point in their lives need long-term care, but few are planning for it. One mistaken belief is that Medicare and other insurances will help cover these costs. Wrong. If we don’t need it ourselves, someone close to us will. One way or another we are very likely to be hit with this reality.
As evidence, the U.S. government estimates that 70 percent of people over 65 will require long-term care. In many cases, the care will constitute assistance of a non-medical nature. Included are assistance with what are called activities of daily living such as bathing and grooming, meal preparation, laundry, light housekeeping and errands such as grocery shopping or trips to doctors’ appointments. The costs of such care can easily empty out retirement savings.
A recent Denver Post article stated that a 65 year-old today can expect to incur $138,000 in long-term care costs over their lifetime. More than 50 percent end up paying for long-term care out of pocket, according to a Bipartisan Policy Center report. The figure rises to nearly 70 percent for those receiving long-term care at home. And research shows that most people want to stay at home rather than going into a care facility of some kind, whether a nursing home or assisted-living facility. Knowing this, it makes sense that it will be wise to plan to not become a victim of lack of preparation for the eventuality.
Statistics reveal that only 11 percent of older Americans have private long-term care insurance. One challenging factor is the cost of this type of coverage. However, the younger you are when you purchase coverage, the more affordable insurance premiums will be. The cost to sign up increases with age. Growing in popularity are “hybrid”policies that combine death benefits or annuities with long-term care benefits. Clearly, now is the time to consider how to ease the potential burden of getting and ill or disabled. For more information about paying for the costs of long-term care we invite you to contact us at World of Wellness Home Care, which is certified as a non-medical home care agency by the State of Colorado: 303.780.7339.