Senior caregivers know the reality of the costs of senior care. Unfortunately, many families do not consider the costs of senior care nor the care plan preferred for a parent until there is an emergency medical situation. Harold Lustig’s book, Naked in the Nursing Home, serves as an educational guide in understanding senior care costs and options. Harold shares with us below the value of long-term care insurance in planning for retirement care and you can find the daily costs of nursing homes nationwide on Caregiverlist.
Too few people appreciate the value of long-term care insurance as the solution to the destructive emotional and economic consequences of longevity–until they use it. As you age you lose your mental and/or physical abilities, unless you die first. Where will the money come from to pay for long term care that costs on average $90,000 per year?
Baby Boomers and their families are realizing the difficulties associated with long term care—and the financial crises that can occur if there isn’t a financial plan in place to cover its’ costs. The constant changes being made to health care, insurance, Medicare and Medicaid only further complicate the situation. The scary part is that today’s care giving needs pale in comparison with those of tomorrow. Our aging population has fewer assets due to the economic downturn, lower savings and confusing access to public benefits that are constantly shrinking. The population also has fewer children than previous generations; meaning there is less of a chance of the family sharing the burden of care and its costs.
Fortunately, there is a solution that can minimize the financial distress associated with aging and its associated care. A well designed long-term care insurance (LTCI) policy with inflation protection creates a tax free pool of money that is purchased at a discounted rate. They also grow and pay out tax free. These policies pay not only for nursing home care, but for care in an assisted living facility or in the home. These are two things Medicaid generally does not pay for.
If care costs on average $90,000 per year today, and a long term care insurance policy costs on average $3,000 per year (depending on amount, benefits, and your age) which makes more sense? And, before you say, it’s too expensive ask yourself, “compared to what?”
My forthcoming book, Naked in the Nursing Home: The Woman’s Guide to Paying for Long-Term Care without Going Broke, provides what you need to know about insurance, federal programs, how to avoid a family crises, how to avoid elder financial abuse and much more. The book can be preordered on Amazon.com.
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