If you are thinking about assisted living now or in the future, it is important to take several items into consideration. The cost of assisted living, as well as long-term care in nursing homes, has continued to increase over the past several years. Keep in mind that there may be a shortage of direct-care workers in the future, which may be one of the reasons the cost continues to increase.
Research shows that the cost of long-term care (in a medical facility or assisted-living facility), if not covered by your medical insurance policy, could potentially devour your entire life savings. Therefore, ensuring that you are covered by long-term care is practically a given in nearly every retiree’s insurance policy. It should be a standard practice when it comes to planning for your retirement and reviewing your insurance needs.
Long-term care insurance covers nursing home care, home health care, community programs and assisted living; however, this additional coverage comes with a price. The best time to purchase long-term care insurance is in your late 40’s-50’s while you are still healthy. The premium will be more attractive plus you will be insurable. In the event that you never need to use this long-term care policy, many insurance companies return some of the premiums. It is important to sit down and talk with your financial planner about this.
Given the rising cost of health care and the shortage of health workers, more and more family members (some of whom are seniors themselves) are helping to care for their elderly parents.
Some health insurance companies are now providing assistance to help pay for a relative’s time to help care for the insured person. Also, many insurance companies are recommending some of the proposals for giving a tax incentive to family members to help with some of the costs of caring for someone who is ill.
Insurance companies understand the importance of keeping an elderly person with their family as long as possible. Of course, in some cases, the only choice may be a nursing home or other long-term care commitment.