Most people don’t live life planning on one day being so frail or ill that they can’t do basic things like get out of bed, take a shower and get dressed. Unfortunately, denial about aging and deteriorating health often leads people to overlook their long-term care needs and associated financial health.
In fact, Forbes reports that only about one-quarter of adults nearing retirement have seriously considered getting long-term care insurance or a savings account for long-term care expenses. And more than half haven’t discussed their long-term care needs and preferences with their family or friends.
Meanwhile, nearly 70% of 65-year-olds will need some form of long-term care in their lifetimes, and this care comes at significant financial cost. The median cost of a private room in a nursing home is $10,025 per month in 2024, while the median cost of assisted living is $5,551 per month. Homemaker companion services cost about $195 per day, and home health aides cost around $213 per day.
Paying these costs out of pocket requires significant financial assets, and many don’t qualify for Medicaid-covered nursing home care. This leaves people with tough life choices to make: Will they drain accounts and deplete their wealth to pay for care? Or will someone in their family quit their job and become a caregiver?
Fortunately, long-term care insurance provides another option for preserving wealth and dignity—but it’s something that must be planned for and considered sooner than later.
Long-Term Care Insurance Helps Preserve Wealth
The New York Times paints a sad reality that among Americans who had $171,365 to $1.8 million in savings at age 65, those with greater long-term care needs were “much more likely” to “die broke” than those who did not need long-term care.
The good news is, long-term care insurance can help protect people from this fate. This type of policy is designed to help pay for the long-term care services policyholders need. It typically reimburses policyholders a monetary daily amount (up to a pre-selected limit) for assisted care services (such as eating, bathing or dressing).
With financial assistance from a long-term care insurance policy, people may be able to protect their retirement savings and preserve wealth that could benefit their family for generations to come.
Read more: Long-Term Care: Who Needs it and How Much Does it Cost?
Long-Term Care Insurance Helps Preserve Dignity
When many people think about long-term care, negative images of lifeless institutions riddled with neglect and dangerous conditions come to mind.
While places like that certainly exist, there are also many wonderful nursing homes and assisted living communities that offer high-quality medical care, compassionate staff, top-of-the-line amenities, and vibrant communities of residents. Owning long-term care insurance can help give policyholders the financial freedom to choose a long-term care facility that meets their needs and preferences.
Owning a policy can also help give people the option to receive care in the comfort of their own homes—without needing to rely on loved ones for help with vulnerable tasks like bathing and toileting.
Plan Ahead With Long-Time Care Insurance Sooner Than Later
Long-term care insurance is a wonderful option for helping to protect the wealth and dignity of seniors; however, it’s very difficult for someone who’s already old, injured or ill to qualify for coverage.
That’s why it’s important to plan ahead and not kick the can down the road. Many professionals recommend people purchase long-term care insurance in their mid-50s so they can qualify for coverage and lock in lower premiums.
Want more? Check out our blogs, 6 Long-Term Care Myths That Could Impact Your Retirement and How to Talk to Your Aging Parent About Long-Term Care.
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