Plan to create a pool of healthcare dollars that will grow in any market.
How will you pay for long term care?
The sad fact is that most people don’t know the answer to that question. But a solution is available.
Many baby boomers are opting to make long term care coverage an important part of their retirement strategies. The reasons to get an LTC policy after age 50 are very compelling.
—Kevin B. Perlberg, CFP®
Your premium payments buy you access to a large pool of money which can be used to pay for long term care costs. By paying for LTC out of that pool of money, you can help to preserve your retirement savings and income.
The cost of assisted living or nursing home care alone could motivate you to pay for an LTC policy. Genworth Financial conducts a respected annual Cost of Care Survey to gauge the price of long term care in the U.S. The 2014 report found that:
*In 2014, the median annual cost of a private room in a nursing home is $87,600 or $240 per day – up 4.35% from last year. The median annual cost of a semi-private room is $212 a day, which calculates out to $77,380; that is 2.62% greater than what Genworth estimated last year.
*A private one-bedroom unit in an assisted living facility has a median cost of $3,500 a month, which for the record is 1.45% higher than in the 2013 survey.
*The median hourly payment to a non-Medicare certified, state-licensed home health aide is $20 in 2014, up 1.59% from 2013.
Can you imagine spending an extra $40-90K out of your retirement savings in a year? What if you had to do it for more than one year?