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by Kelly Hubrig, Wealth Advisor
When it comes to financial planning, it’s fun to think about the trips you’ll take in retirement or the legacy you’ll leave. But something that’s even more important to consider is your long-term care.
This can be anything from nursing home care to help with personal care, such as bathing, dressing and eating, in your home or an assisted living facility.
Long-term care in the United States ranges from $21 an hour for a home health aide to nearly $7,000 a month on average for a private room in a nursing home, according to the U.S. Department of Health and Human Services. And seven out of 10 Americans age 65 or older will need some type of long-term care, the department says.
By comparison, long-term care insurance costs on average $2,007 a year or $1,720 a year with a preferred health discount, according to the American Association for Long-Term Care Insurance.
Some people are hesitant to purchase long-term care insurance, because rates are increasing, and if they don’t need it, they see it as money down the drain. But there is another option. A hybrid policy, such as life insurance or an annuity with a long-term care rider is a way to maintain control of your money and provide for your long-term care.
If you don’t need to use it, you can leave the money to your beneficiaries or access a portion or all of the cash yourself (depending on your policy), though it would affect your long-term care benefits.
With rising health-care costs, more people are looking into long-term care coverage, and a hybrid policy is becoming a popular option. This is something you should consider as you plan for your retirement and continue to monitor in retirement. It’s more affordable the younger you are. Your health will also determine your costs and available policies. An advisor can help you determine which policies might work for you.
Ignoring long-term care coverage could jeopardize the wealth that you’ve created, but making long-term care part of your financial plan can help you preserve what you’ve worked so hard to accumulate. As a wealth advisor, my goals are to help you reach retirement and protect your assets when you get there.
Source: U.S. Department of Health and Human Services
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This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. It may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities that may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company.
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Riders are additional guarantee options that are available to an annuity or life insurance contract holder. While some riders are part of an existing contract, many others may carry additional fees, charges and restrictions, and the policy holder should review their contract carefully before purchasing. Guarantees are based on the claims paying ability of the issuing insurance company.
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