May 22, 2017

Plenty of statistics indicate that up to 70% of Americans will need long-term care at some point in time. Just one significant long-term care event or the diagnosis of a cognitive condition can significantly alter your retirement plans. Many people assume that Medicare will help to pay for all of your long-term care expenses. However, many of these are not classified as medical treatments and will therefore not be paid for through Medicare.

Medicare will help to pay for the first 100 days of nursing home care and some of the long-term care expenses may be covered by Medicaid but this program is typically geared for low-income individuals. You may pay with three primary sources; family, self-insuring by paying through out of your own pocket, or a long-term care insurance.

The least complicated but often the most difficult or expensive way for long term care is to put aside extra money in your savings to pay for these costs. However, bear in mind that the average costs of long-term care can top $130,000. You might even assume that your family will help to take care of you. However, when it comes time that you need assistance, getting it from your family may not necessarily be available.

Family members like children may have moved away or you may have comprehensive healthcare needs that cannot be addressed by family members. The individuals who have a lot of assets will typically not qualify for Medicaid without advanced planning for Medicaid purposes so long-term care insurance could be a critical help but it is important to identify that this insurance opportunity early rather than later so that you can lock in rates while you are still relatively young and healthy.