When most people envision retirement, they picture travel, hobbies, and time with loved ones, not the possibility of needing long-term care. Yet, the reality is that nearly 70% of people over age 65 will require some form of long-term care during their lifetime. Without proper planning, these costs can quickly drain the assets you’ve worked so hard to build.
The Financial Risk of Long-Term Care
Long-term care (LTC) includes a range of services, from in-home care to assisted living facilities and nursing homes. These services can be costly:
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Home health aide: Around $5,000 per month
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Assisted living facility: Around $4,500 per month
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Private nursing home room: $9,000+ per month
These expenses, especially if needed for several years, can significantly impact your retirement savings.
Why Planning Ahead Pays Off
Purchasing LTC insurance earlier, typically in your 50s or early 60s, can help lock in lower premiums and ensure you’re covered before any health conditions make coverage difficult or impossible to obtain.
Types of Long-Term Care Coverage
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Traditional LTC Insurance
Offers a set daily or monthly benefit for qualifying care. Premiums may increase over time, but coverage is typically comprehensive. -
Hybrid LTC Policies
Combine life insurance or annuities with long-term care benefits. If care is never needed, the policy can still provide a death benefit or cash value. -
Self-Funding Strategies
For high-net-worth individuals, earmarking certain assets for future care can be a viable alternative, but requires discipline and careful investment planning.
Integrating LTC into Your Retirement Plan
Long-term care planning is not just about buying a policy, it’s about ensuring that your entire retirement strategy can withstand unexpected healthcare expenses. This may involve coordinating LTC coverage with Social Security income, annuity payouts, and tax-efficient withdrawal strategies.
Peace of Mind for the Years Ahead
At Blue Marble Advisors, we help our clients evaluate all available long-term care solutions, compare policy features, and determine how each option fits into their broader financial plan. The goal is simple: to protect your hard-earned savings and give you peace of mind for whatever the future holds.
Curious about your long-term care options?
Reach out to us today for a personalized review.