We insure our home, cars, life, and potential disability, but why do we overlook long-term care? We all know we need it, but we also really don’t want to think about it and discuss it. Why so few insure themselves against something that can wipe-out everything they have worked their entire lives to accumulate is a question that elicits various responses.
The very rich probably don’t need long-term care Insurance, and the poor can’t afford it and will be forced to rely on Medicaid. Those of us that don’t fit into either of these categories must look at long-term care insurance as part of our retirement planning strategy. The younger and healthier you are when you buy the policy, the cheaper the policy, and the better it will be, so don’t procrastinate.
With the national median cost of a private room at a nursing home now at $102,900, and that cost being even higher in the New York Metro area, it doesn’t take long to burn through your assets.
Even though long-term care insurance premiums continue to rise and benefits get reduced, it is still something that we all should consider. None of us can predict whether we or our spouse will incur a long-term medical illness or a catastrophic medical event in our lifetimes, but knowing we have a long-term care policy as part of our retirement planning can certainly provide us with peace of mind.
Scott R. Goldstein, CPA