How Important is Long-Term Care Insurance for Retirees?

Those who are about to retire know and worry about the fact that at some point, they will need medical care, probably for an extended period. This could be in the form of home-based care or being cared for at a medical center, but either way, the expenses associated with medical and health care are enormous.

Ideally, you will need to start planning how to take care of these future costs while you’re still young, healthy and earning a regular income.

Some Facts about Long Term Care that You Should Consider

Here are some facts about long term care that anybody who is planning their retirement, or about to retire, needs to take into consideration:

  • 7 out of 10 individuals who are above the age of 65 will, at some point during their lifetime, need long term care.
  • In the case of a married couple, the odds increase to 9 out of 10 that one of them will need long term care eventually.
  • Obviously, those who live alone will need someone to take care of them, either by hiring a home-based caregiver or moving into a facility.
  • Since women tend to live longer than men, couples and single women will have to consider the possibilities of extended expenses for long term care.

These facts establish the potential need for long term care, and the next question is, how will you fund that? Also, consider whether any of your dependents may also require long term care, perhaps as a result of accidents/illnesses, and how you will handle the associated costs.

The answer lies in insurance, specifically long term care insurance, so when you are planning your retirement fund, this is an essential factor to include.

Why Invest in Long Term Care Insurance?

Insurance usually comes into picture when something unexpected happens. In the case of post-retirement life, here are some things that are likely to happen:

  • Government Cover – It is no longer practical to expect government aid to cover all the costs of care for every individual. There are simply too many ifs and buts in the plan, and that’s like an axe constantly hanging over one’s head. This is why so many people opt to invest in individual policies that cover long term care.
  • Cost of Care – As with most other things, medical care comes at a steep cost. There is no possible way that a typical retirement fund can take care of all these expenses. Most folks find that their retirement money is only sufficient to take care of living expenses. Paying for medical care on a daily basis, with constantly rising costs, is getting tough.
  • Medical Insurance – The medical insurance you already own may not cover for extended care-related expenses. The typical policy will only take care of costs associated with medical procedures and that’s about it, so make sure you check the terms and conditions of your plan and invest in a long term care policy if needed.

Benefits of Long Term Care Insurance

Long term care insurance aims to fix all the problems mentioned above. Here’s how it can help with post-retirement long term care expenses:

  • When the government coverage runs out, the insurance will kick in and help you out with in-home care as well as custodial care.
  • The comfort of knowing that in home care costs will be covered is a special one. When you have retired, all you wish for is to stay at home and be able to relax, with someone who can take care of you in a familiar and comfortable space.
  • Lastly, the care insurance fills the gap in your existing medical insurance. Post medical procedures, you can still live worry-free with the knowledge that your insurance will take care of all care-related expenses.

While planning your retirement, you can make an already solid portfolio even better by adding long term care insurance to it, and enjoy the peace of knowing you will be taken care of through your retirement!

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