As we sit around the Thanksgiving table in a few weeks, we’ll look at our loved ones young and old and give thanks for the time we have together, the memories we’ve shared, and our health. As you reminisce, ask yourself, “am I prepared if the time comes I’m unable to care for myself?” Did you know Medicare doesn’t pay for long-term care?
The average nursing home costs $73,000 per year. Unless you have planned diligently and have excessive funds in retirement, this number is staggering. Millions of older adults are unprepared for this cost, and find themselves living with family members who take on the burden of caring for them.
For those without the financial means to pay for long-term care or family to provide the necessary care, a harsh decision must be made – opting for state Medicaid to pick up the tab. There are risks involved, however, with this option, including forfeiting your home and other retirement savings. You can read more about this in one of my previous blogs.
Options to Pay for Long-Term Care
I believe most of us at some point have asked our family members to avoid putting us “in a nursing home.” I believe most of us prefer an assisted living facility or personal care home we have confidence in, but without proper funding, this is an impossible request.
If you don’t have a retirement fund to cover the costs associated with long-term care, your best option is to consider long-term care insurance. To get the lowest rate, it’s best if you apply when you are younger and more healthy.
I know this can seem to some like another “useless policy” you’ll never use, but the government predicts that 70 percent of adults that reach the age of 65 will require long-term care at some point. Those are odds I myself am not willing to gamble with. The good news – you can use your health savings account to pick up some of the cost of long-term care insurance as seen on our web page.
Do you have questions about long-term care insurance? How can MediGap Advisors help you prepare for your future?
Wiley Long is founder and president of Medigap Advisors, and is passionate about helping people navigate the confusing waters of Medicare. He is the author of The Medicare Playbook: Designing Your Successful Health Coverage Strategy, a clear and simple explanation so you can make the most of your Medicare coverage. For more information visit www.MediGapAdvisors.com.