PLANNING FOR THE COSTS OF LONG-TERM CARE

Today our population is aging faster and living longer. According to the U.S. Department of Health and Human Services, the average 65-year old today has a 70% chance of needing long term care at some point in their lifetime. Most use it for about two years but 20% need it more than five years. These costs can be quite significant and vary depending on the amount of care needed but annual costs can top $100,000/year.
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Will you be ready to cover these costs? And how long will you need this care? Most health insurance does not cover costs for long-term care. And Medicare does not 
cover long-term or custodial care either. Medicaid provides help for low-income 
families, but this is generally available only after completely exhausting their life savings. So those without long-term care insurance pay these expenses out-of-pocket.
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Long-term care insurance can be expensive. According to the American Association for Long-Term Care Insurance (AALTCI), on average a 55-year-old man in the United States can expect to pay over $2,000 per year in premiums. And premiums 


increase with age and vary based on age, health and specifics to the policy.
Long-term care usually involves needing assistance with typical tasks like eating, bathing and moving around which are termed activities of daily living (ADLs). Long-Term care insurance policies generally reimburse for these services done in your home, an assisted living facility or nursing home.
Long-term insurance does not cover costs of medical care. Those typically fall under regular health insurance or Medicare. And pre-existing medical conditions may not be covered during an exclusion period. It is important to track with what a policy 
covers and what it does not because each carrier sets its own rates and underwriting 
standards. Be sure to shop around.
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Since most people will need some form of long-term care, it is wise to consider how to pay for these additional costs. A long-term care policy is a viable option. Another is to boost retirement savings to ameliorate long-term care costs.
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Remember, we are always available to discuss your financial goals.