What if your well-crafted retirement plan imploded due to the costs associated with a catastrophic medical need. Several of my clients have asked about protecting their assets in case of a nursing home stay or another long-term care scenario. They wonder if they need long-term care (LTC) insurance and how it works. I wanted to share these facts with you:
- A recent projection by PBS NewsHour and the SCAN Foundation estimated that 70% of people 65 or older will one day need some form of long-term care. 1
- If you need nursing home care, you may risk draining your retirement savings. Last year, the average monthly cost for a semi-private room in a nursing home was $6,844, according to Genworth Financial’s respected Cost of Care Survey. 2
- Medicare will not take care of your long-term care needs. Medicare only pays for the cost of a skilled nursing facility for 20 days; it then requires a significant co-pay from you for the next 80 days. After 100 days, Medicare’s long-term care coverage runs out. 3
- Medicaid will pay for long-term care, but only after your income and assets fall below state and federal thresholds. 3
- Long-term care insurance isn’t just limited to nursing home coverage. Long-term care is defined as any assistance provided to someone who has a condition or illness limiting the ability to perform normal daily activities. This can range from help with eating or dressing to forms of rehabilitative and therapeutic care. 4
I can help you look for long-term care coverage that is effective and affordable. Please contact me, and I’ll be happy to show you some of the options available. You can call me at 352-281-4646, or you can simply email me at firstname.lastname@example.org.
1 – homecaremag.com/aging-place/july-2017/5-ways-sort-through-long-term-care-planning [5/17]
2 – genworth.com/about-us/industry-expertise/cost-of-care.html [6/22/16]
3 – cbsnews.com/news/long-term-care-misconceptions-retirement/ [7/7/17]
4 – agingcare.com/articles/definition-of-long-term-care-insurance-143436.htm [7/28/17]
Securities offered through J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC. Advisory Services offered through J.W. Cole Advisors (JWCA). North Florida Wealth Advisors and JWC/JWCA are unaffiliated entities. Securities are not FDIC insured or guaranteed and may lose value. Investments are not guaranteed and you can lose money. This presentation is for educational purposes only and is not an offer to buy or sell an investment. Neither North Florida Wealth Advisors, JWC/JWCA are tax or legal advisors and this information should not be considered tax or legal advice. Consult with a tax and/or legal advisor for such issues.
By Chris Conner