Long Term Care is not covered

If you've been involved with providing or obtaining long-term care services for a family member, you know how devastating the emotional and financial costs of this care can be.  The costs are increasing every year, so by the time you need care, you will require a significant sum of money to ensure you get the best care possible.  Long term care is not typically included in your health insurance on MediCare supplement policy.

Consider purchasing Long Term Care Insurance. It provides a way to pay for your in home and facility care.  It gives you the funds you'll need to stay in control of where you live and the quality of care that you receive.

This insurance is not only needed for an older person.  Accidents and sudden illnesses requiring long term care can happen to anyone at any time.  It is wise to buy this insurance while you are young and healthy.  It will be less expensive; your premiums will be lower than at older ages, and there is less chance your application will be declined because of your medical history.

Let's look at an example. The cost of care for a year in Southern California is about $75,000 today.  If you are now age 55, and you don't need care until you are 83, the cost of care by then will be about $245,000 per year, assuming inflation stays at the current rate of five percent in this sector.  Most people need care from four to five years.  That means that your cost at age 83 would be about $1,355,400.

Where will the money come from?  If you purchase long-term care insurance before your 6oth birthday, the annual cost should be in the neighborhood of $3,000.  That will get you your $1,355,400 by age 83, for an investment of less than 10 cents on the dollar compared to the benefits you'll receive.  If you were to invest that $3,000 annually at 6% return after taxes, the amount you'd have available to spend on long term care would be about $216,000.  What would you rather have, a million dollars or $200,000 to ensure you get great care and the ability to remain at home for as long as possible?

There are many ways to structure a long-term care insurance plan to fit your budget and your personal situation.  Contact our office now at 909-747-0280 and let's have a private consultation to see how we can help preserve your retirement lifestyle, assets, and income.  You'll be glad you did.