By Brett Gottlieb
Do you really need long-term care insurance? It’s a question that’s crossed all our minds at some point. For some, the thought of sky-high bills and burdened family members is enough to motivate them to invest in some sort of long-term care insurance. But for others, the hefty premiums just don’t seem worth it and they don’t think they’ll need it. Regardless of which camp you’re in, here are 5 surprising things you should know about long-term care (and the potential impact it could have on your nest egg later in life).
About 7 out of 10 people currently age 65 will need some form of long-term care during their lifetimes. While the amount of time for which the average person will require help ranges, it is estimated that men will need 2.2 years of care and women will need 3.7 years. Regardless of present health or circumstance, eventually most people will need some form of long-term care during their lifetime.
It may shock you to know that Medicare doesn’t cover typical long-term care expenses. Medicare is medical insurance. It covers acute care expenses like doctors’ visits, prescription drugs, hospital stays, and short stays in a skilled nursing facility in special circumstances. Medicare will not cover basic long-term care needs or facility costs. Basics such as assistance with daily personal care needs like bathing, feeding, getting dressed, and supervising are not covered by Medicare.
Long-term care costs are expensive. The average national monthly cost for an in-home health aide is $4,385, assisted living facilities cost $5,148 a month on average, while a private room in a skilled care facility will cost you around $9,034. With costs this high, it’s no wonder that long-term care expenses often result in financial plan failures, even for those with resources.
Many people think long-term care insurance is only for traditional nursing homes or skilled care facilities. Most policies today cover much more. Home health aides, assisted living facilities, and retirement communities are often covered with today’s long-term care plans. Some plans include coverage for professional help should you need assistance with eating, showering, getting dressed, and using the bathroom.
Women can expect to have higher long-term care costs than men simply because they tend to live longer.  When a husband is sick, for example, the wife often steps up to care for him until his passing. When the wife finds herself in the same situation years later, she typically doesn’t have a spouse to offer the same care. As a result, this burden falls on children or extended family members. Long-term care insurance can provide the resources needed to prevent being a burden and allow you to choose how, when, and where you receive care.
No matter what your health looks like today, statistics show that most people will need some form of long-term care during their lifetimes. And that means it is critical to have a plan to cover these potentially significant costs. This can seem daunting, especially when coupled with the need for an adequate retirement income.
We at Comprehensive Advisor want to help relieve some of your worries. We can help you create retirement income strategies and reduce the chance that a long-term care stay will derail your plan. If you’d like to see how we work, email us at info@ComprehensiveAdvisor.com or call (760) 813-2125.
Brett Gottlieb is the founder of Comprehensive Advisor and a financial advisor with nearly two decades of industry experience. He graduated from California State University-Chico with two bachelor’s degrees in Business Administration and Economics. Brett is Life Insurance licensed in several states. He is passionate about guiding his clients on retirement income planning, helping each client pursue their specific retirement goals and defending the assets his clients have worked so hard to achieve. Brett is a California native and currently resides in San Elijo Hills with his beautiful wife and three children.
With a combined experience of over three decades in the financial services industry, our advisors hail from some of the largest independent broker/dealers and banking institutions in the country. They have dedicated their professional careers to creating personalized financial solutions for individuals and families who seek successful retirement planning and currently offer investment advisory services through AE Wealth Management, LLC. Our advisors take a common-sense approach to the planning process and work with clients to create a retirement road map to help ensure their assets are protected and they receive the income needed to enjoy their future. Based in Carlsbad, California, they work with clients throughout San Diego County and beyond. Learn more by connecting with Brett on LinkedIn or email them at info@ComprehensiveAdvisor.com.
Insurance products are offered through the insurance business Comprehensive Advisor. Comprehensive Advisor. is also an Investment Advisory practice that offers products and services through AE Wealth Management, LLC (AEWM), a Registered Investment Adviser. AEWM does not offer insurance products. The insurance products offered by Comprehensive Advisor are not subject to Investment Advisor requirements. AEWM and Comprehensive Advisor are not affiliated companies. C.A. Financial & Insurance Services, CA Ins. Lic. #6000262. Insurance services provided through Comprehensive Advisor, LLC. Any and all other services related to insurance are an outside business activity and are not offered through or supervised by AE Wealth Management, LLC. This material is intended to provide general information and is believed to be reliable, but accuracy and completeness cannot be guaranteed. Our firm is not affiliated with the U.S. government or the federal Medicare program. 1440114-08/22
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