Why You Should Consider Long-Term Care Insurance

Why You Should Consider Long-Term Care Insurance 

Approximately 70 percent of people need some type of long-term care after age 65, so you may likely need long-term care as you age. Most people think that Medicare covers long-term care at home or in a nursing facility, but that is not the case. While Medicare offers some basic services for a short period, it doesn’t cover assisted living, skilled nursing, or long-term care. The insurance experts at Media Benefits Insurance Services share this important information on long-term care insurance.

Long-Term Care is Expensive 

If you were to need long-term care and paid for this care out-of-pocket, you could deplete your life savings in a flash. While the costs for long-term care vary across the country, the median annual cost for assisted living care is $48,612, and the cost of nursing home care is more than double that, with the nationwide median at $102,200 per year. The median annual cost for home health aides is $52,624. It’s easy to see how your retirement nest egg could be gone in the blink of an eye.  

Long-Term Care Insurance is a Good Solution 

A long-term care insurance policy is the best solution for covering long-term care. Combined with your Medicare insurance, you can be assured that you will have the necessary resources and services you will need. 

How Medicare and Long-Term Care Insurance Work Together 

Medicare Benefits - Medicare offers some care services, so when possible, it’s best to take advantage of these benefits first. For example, after a three-day hospital stay, Medicare will pay for the total cost of skilled nursing care for the first 20 days in a skilled nursing facility. After that, you will pay around $200 co-insurance per day. After 100 days, Medicare assistance stops unless you meet certain criteria, such as being unable to leave your house for medical or therapeutic care. Medicare will then pay for home healthcare services. It is also important to note that Medicare does not cover 24-hour care. 

Long-Term Care Insurance - Long-term Care Insurance is designed to cover long-term support and services not covered by traditional medical insurance or Medicare. It can include a variety of benefits for individuals who need constant medical attention or custodial care with daily activities like eating, bathing, or mobility in either an assisted living facility, in-home custodial care, or a private room in a nursing facility. Long-term care policies reimburse long-term care beneficiaries a daily amount for services. The cost of a long-term care policy is based on age, desired benefit amount, and any additional benefits you choose to include.  

Contact Us Today to Review Your Long-Terms Care Options! 

Considering long-term care insurance is an important factor in your financial plan. There are many plan options to choose from based on your financial situation and needs. Now is the time to start preparing for your potential long-term care needs so that you are not financially devastated in the future. You can schedule an appointment by contacting:  

Michelle Lee
First Entertainment Credit Union
Financial Advisor 

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First Entertainment Credit Union and First Entertainment Investment Services are not a registered brokers/dealers and are not affiliated with Securities America. Securities America Advisors do not offer tax advice. Please consult a tax professional.