Incorporating Long-term Health Care Insurance Into a Complete Retirement Plan

Retirees who find themselves in need of long-term health care quickly learn that out-of-pocket medical expenses can rapidly drain even the most robust retirement savings.

Worcester, MA – April 28, 2015 /MM-LC/ —

Seniors in the U.S. are living longer, healthier lives than any generation before them. Good news for retirees looking forward to a long, enjoyable retirement provided they have planned ahead for long term health care costs.

According to the U.S. Department of Health and Human Services, approximately 70 percent of Americans age 65 and over will need some form of long-term care after retirement. Long-term care can mean many different things depending on the patient’s needs, such as skilled nursing and rehabilitative care after a lengthy hospital stay. It can also mean home health care services, a stay in an assisted living facility, or nursing home care.

The costs, however, can add up fast. The average cost of a one-month stay in an assisted living facility was $3,550 in 2014. The cost of a licensed home health aide is about $21/hour and a private room in a nursing home averages $229 per day.

Retirees who find themselves in need of long-term care quickly learn that out-of-pocket medical expenses can rapidly drain even the most robust retirement savings. Medicaid, Medicare, Medigap and HMOs will not cover every health-care cost that comes up, and for this reason a growing number of financial advisors have become more focused on the importance of long-term care insurance in a complete retirement plan.

In addition to helping protect retirement savings from being drained by the high costs of medical care, long-term care insurance can help retirees preserve their standard of living and maintain financial independence. It can also provide more options regarding where the policy holder may receive the long-term care they need: in their own home, in an adult daycare center, in an assisted living facility or in a nursing home.

The right long-term care insurance can be customized to fit each retiree’s specific needs, and it can be shared with a spouse, which may result in lower premiums.

Premiums for long-term care policies are based on the policy holder’s age, making the best time to purchase a plan between the ages of 50-70 to keep the premiums as low as possible. Although the policy holder may pay for a longer time, the benefits can be worth it—potentially lower overall costs, benefit amounts that increase over time, and a decreased risk of being disqualified because of a change in health.

Financial management specialist Greg Lavelle of RetirementAdvisers.net in Worcester, Mass. says that with today’s fluctuating economic conditions and market swings, planning for retirement should include maintaining an adequate level of insurance coverage to accommodate the retiree’s potential need.

“The real risk of not planning for how a person is going to pay for health and long-term care costs isn’t just about having enough money to cover them,” “Lavelle says. “It’s whether your family could end up being burdened with your care.

“We help our clients plan their retirements by working with them to develop a complete long-term strategy, and that has to include health insurance,”

Ignoring the potential costs of long-term health care could be the biggest financial planning mistake many retirees make. Talking to a retirement planning professional with expertise in long-term care policies designed to protect nest egg assets can make all the difference when it comes to securing a comfortable, worry-free retirement plan.

For more information about us, please visit http://www.RetirementAdvisers.net

Contact Info:
Name: Greg Lavelle
Email: glavelle@corporatebenefitplans.com
Organization: Retirement Advisers
Phone: 508-770-0304

Source: http://councilofeliteadvisors.com/liftmedia

Release ID: 80637