A woman who is in the process of getting her doctorate from Texas Tech University recently released an article about the truths that people need to know when it comes to long-term care planning. She began by simply pointing out how normal retirement plans for travel and other expenses could be entirely destroyed by health issues, seeing as how these issues could eat up money that was saved with other purposes in mind.
Studies have backed up her claims, showing that anywhere from 30 to 50 percent of those who get to the age of 65 are going to need care in an assisted living center or a nursing home. However, the numbers for women alone are even more telling, as it appears that around half of all women will end up in this position, meaning that the cost of care is more likely to impact them than men.
With that in mind, she said that Medicare may not cover the costs of long-term care, as some people assume. The cost on its own can be quite high, ranging up around $100,000 for a year of care.
She said that many people end up neglecting insurance for one reason or another, but she pointed out that an insurance plan that covers the costs that Medicare does not could be the very best option for these people to use. She stated that the risk is higher than people realize, leading them to skip out on an insurance policy, even though they will buy things like fire insurance or a warranty on a television, both things with lower risk levels.
When looking into long-term care planning, it is important not only to know what the risk is, but also to know what steps can be taken to cover that risk and prepare for the future.
Source: Source: ABC News, "Terminal Truths about long-term care costs," Laura Mattia, July 1, 2014