The idea of long-term care can be scary for many Americans. As we get older, however, it’s an unwelcome necessity for many. The emotional and financial consequences can and may be devastating to those that require coverage and those around them.
Saving can be a financial stressor, and depending on family medical history, one may want to save even more in preparation for accommodations to be made for a genetically predisposed illness like Alzheimer’s Disease or Dementia. A feeling of impending doom can feel very real, and very scary when thinking about long-term care.
In instances like this, many with a family history of medical issues may believe that they will pass away at a relatively young age. However, even if your family has a long history of medical issues and you find yourself suffering from a chronic or untreatable disease, you may still live for a long time.
Assuming you do live for a long time, it’s entirely likely that you will not be able to live by yourself for the rest of your life. You may require long-term care as you get older. The Administration on Aging estimated that 70% of people 65 or older will require long-term care in some capacity. [1]Your children or relatives may not be in an emotional or financial position to take care of you, so you may end up in a nursing home or assisted living facility.
The emotional implications of long-term care can be a burden. People may not want to move into long-term care facilities or retirement homes, and this can cause infighting and distress amongst relatives. Fearing that you may mentally or physically decline in your golden years and spend a portion of your life sick can be emotionally taxing on an individual, as well. And worrying about saving for medical care or long-term care later in life can cause stress as well.
Long-term care can be prohibitively expensive. Nationally, the average cost of a private room in a nursing home facility is $108,405 per year, and a semi-private room runs around $94,900.[2]
Long-term care insurance plans can help alleviate some of the financial burden. If you pay premiums now and require long-term care later in life, what you’ve paid will cover part or all of your care. It’s also important to note that long-term care insurance covers some things that traditional health insurance won’t.
Financial professionals may recommend purchasing long-term care insurance in your fifties or sixties. AARP suggests shopping for a policy between the ages of 60 and 65. [3]
It’s important to speak to your relatives, spouse, children, or beneficiaries before this time comes to ensure that you have a plan on what will happen to you should you require long-term care. For additional information on selecting a long-term care plan that may be suitable for you, your spouse, or a loved one, please contact a financial advisor. And if the emotional implications of long-term care are weighing heavily on you, consider seeking mental health services.
The opinions contained in this material are those of the author and not a recommendation or solicitation to buy or sell investment products. This information is from sources believed to be reputable, but Cetera Advisor Networks LLC cannot guarantee or represent that it is accurate or complete.
[1] “How Much Care Will You Need?” Administration for Community Living, n.d., https://acl.gov/ltc/basic-needs/how-much-care-will-you-need. Accessed 20 Nov. 2024.
[2] “Cost of Care Survey.” Genworth, n.d., https://www.genworth.com/aging-and-you/finances/cost-of-care.html/. Accessed 20 Nov. 2024.
[3] Shell, Adam. “Buy Long-Term Care Insurance at the Right Age to Get the Best Value.” AARP, 01 May 2020. https://www.aarp.org/caregiving/financial-legal/info-2019/when-to-buy-long-term-care-insurance.html. Accessed 20 Nov. 2024.
