While some adults establish a retirement plan, many believe those savings will also easily pay for extended care as they age.
A leading long-term care specialist says perhaps, but what does extended care really mean?
Matt McCann, a nationally known expert in long-term care planning, says this question is less complicated than you might think.
“If you have at least $250,000 to $500,000 you can set aside and never use for anything else, which will be guaranteed to grow without chance for loss, then you might in theory be able to do so,” McCann said.
Even if you had money you didn’t need for your future retirement, why add uncertain risk? An affordable Long-Term Care policy will safeguard your savings and ease the burdens extended care places on family.
According to the US Department of Health and Human Services, you have a 70 percent chance of needing some type of long-term care service in your lifetime.
The national average cost of care ranges from $3,800 to $7,700 monthly. In just 20 years, the cost is expected to double.
“In 20 years, spending two years in a nursing home could cost about $336,000. People usually start with care at home, maybe with adult daycare or assisted living, before moving to a nursing home. These costs could be substantial,” McCann said.
Compare those expenses to the cost of a Long-Term Care policy.
A married 50-year-old male in good health can pay a premium of under $90 a month. In 20 years, a small LTC policy would grow to $361,222 in value with a monthly coverage level of $6,321. You can design the plan anyway you wish.
Single premium life policies with death benefits are also available. With tax incentives, case management and partnership, the value of LTC insurance is tremendous.
“Last year nearly $24 million dollars was paid in claims daily. Long-Term Care insurance is easy and affordable asset protection,” McCann said.