“According to the 2017 Genworth Cost of Care Survey, a widely used barometer for the industry, the median cost of adult day health care in the United States is $1,517 a month.”
The median cost of adult day health care in our country is more than $1500 a month. It is $3,750 for an assisted living facility, $3,994 for home care services and $4,099 for home health aides.
If you want some privacy, the median cost is $7,148 for a semiprivate room at a nursing home and $8,121 for a private room. That’s expensive! Can you afford it? Wealth Advisor poses this question in its recent article, “Have Clients Planned For Long-Term Care?”
These alarming figures should get you thinking. If you don’t think about the possibility that you may require some form of long-term care services—either a home health aide, an assisted living facility, or a nursing home—then you run the risk of wiping out your entire life’s savings to pay for it, even if it’s a only a short period of time when you or a spouse needs such care.
So, how do you avoid that?
Medicaid isn’t a viable option for most people, because of the relatively low state income thresholds to qualify for the program. One option is to purchase long-term care insurance (LTCi) through a reputable broker or agent. LTC insurance policies typically provide coverage in these situations:
- Home care
- Assisted living facilities
- Nursing homes
- Adult day care
- Hospice care
However, getting a policy isn’t as easy as it may at first appear.
LTC policies can vary quite a bit, based on factors like the insurer, area of the country, and your health status. Find out what benefits will be provided and for what duration. You should also determine the tax implications for your circumstances. Finally, your out-of-pocket cost is a big factor.
It’s best to investigate a LTC insurance policy sooner versus later, because the cost of coverage will only go up as you get older.
Reference: Wealth Advisor (February 16, 2018) “Have Clients Planned For Long-Term Care?”