LONG TERM CARE:
Chances Are You’ll Need It …
But How Will You Pay For It?
As you get older, chances are good that you’ll need some type of long term care as you age. But that care can continue for years and can also be quite expensive depending on the type of care you need and where you get that care.
In Maryland, for instance, a semi-private room in a nursing home costs $101,379 a year. Compare that to the $45,760 annual cost of a home health aide.2 Those prices are significant. But it’s also important to remember that those prices will be much higher in the next 10, 20 or 30 years when you’re paying for that care.
Please don’t build your financial plans under the misconception that Medicare or your health insurance will pay for long-term care services. These only options only pay for skilled nursing services or rehabilitative care for a limited period of time. That means you may still be paying out of pocket depending on the length of the long-term care stay.
That leaves you with two options:
- You could pay out of your retirement savings. (But would doing that cost your spouse the comfortable retirement you’ve both dreamed about?)
- You could buy coverage that helps cover long-term care costs as a safety net for your retirement savings.
Long-term care coverage can come in a variety of forms. That’s why it’s so important to talk to someone who understands your Federal benefits so you can get customized information to help you sort out your options.
GEBA Insurance and Financial Consultants can give you a complimentary consultation to help you find the coverage solution that best fits your unique situation.
1 National Clearinghouse for Long-Term Care Information, available at www.longtermcare.gov.
2 Cost of Care 2015 Survey, median costs and projections for Maryland. Genworth Financial, Inc. available at www.genworth.com.