Long Term Care Insurance (LTCI)
Since the population of older Americans is booming, many people are concerned about needing nursing care at some point in the future. This care can be very expensive, and many experts say it averages about $50,000 a year in the US. That amount of money could certainly put a dent into retirement savings. This may be money you need, or you may want to leave it to a spouse or children. That is why we are encouraged to consider buy LTCI today.
But this coverage can also be expensive, especially for older people on fixed incomes. While premiums for a 50 year old could be less than $1,000 a year, the premiums for a 75 year old could be almost $6000 a year. Before deciding to spend that much money on a policy, take the time to consider your options.
Long Term Care Insurance Alternatives
Medicare only pays for short term nursing care. Medicaid, on the other hand, will pay for long term nursing. But you must use an approved service provider. In addition, Medicaid will only accept people with very low incomes and very few assets. In order to qualify for Medicaid, you have to deplete your income first.
If you want to preserve your wealth, you would want to look for another option. There are some financial and insurance products that can be adjusted to serve double duty. They are purchased for a primary reason, but may also used to provide some backup protection against the rising cost of nursing care.
- Life Insurance – You can look for policies with riders that will allow you to take some of the death benefit while you still alive under specific conditions. A terminal illness or nursing home could be included. If you never need nursing care, your family will still inherit the death benefit. But if you need money for a nursing home, this rider can come in very handy.