At least 70% of people over the age of 65 will need long-term care in their lifetime, according to the U.S. Department of Health and Human Services.
Just let that sink in for a moment. Even if you're in great health
now, odds are you'll need long-term care at some point. Have you planned
for it? You should, because it could be one of the biggest threats
facing your retirement.
The cost of long-term careLong-term care is far more expensive than many people realize. According
to Genworth Financial, in California, the average cost for a day
healthcare facility is about $20,000 per year, while a home health aide
costs an average of $53,000 and the average private nursing-home room
costs over $100,000 annually.
Consider insuranceIf you don't have a
significant asset base, you should consider long-term care insurance,
especially given that health insurance plans generally cover limited
types and dollar amounts of long-term care.
example, most health insurance will only cover up to 100 days of skilled
nursing that follows a recent hospitalization for a related
condition. That means you're on the hook for the rest.
From this perspective, long-term care insurance starts to look really
attractive, especially considering that seven out of 10 Americans could
make use of it.
If you're thinking of buying a policy, then don't delay. The older you
get, the more expensive you are to insure, therefore stalling defeats
the purpose of the insurance. And if your health takes a turn for the
worst, you may be ineligible for coverage. In fact, 45% of long-term
care insurance applicants are denied coverage. That number rises to 66%
for those 80 and over. So, even though it's an extra cost now, getting a
policy while you're relatively young and healthy could pay huge
dividends later on when you really need it.
SOURCE: The Motley Fool, Feb. 8, 2014 (Click Here For The Full Article)