Article Contributed on: 2/19/2008 4:28:26 PM
Crossing your fingers and hoping you wont need long term health care is no way to spend your golden years.
As baby boomers save for dream retirements, most dont realize how easily these dreams can be derailed. The culprit? The cost of long term care.
Many people are not aware of the high costs associated with nursing home care, home care services and other long term health care needs. Betweeen my business and my family, I know these expenses all too well.
Americans are saving for their retirement and anticipating their health care needs, but many people have overlooked long term care, making it one of the largest unfunded liabilities Americans face today.
The figures are daunting. Industry estimates place current costs of home health care services at around $20,000 per year and nursing home stays at more than $65,000. Other long term care costs include assisted living facilities, hospice care and adult day care.
Medicare lacks coverage for such costs and so do most retiree health plans. Therefore, people who do not plan for these expenses face potentionally depleting their savings and relying on Medicaid, or relying on family and friends.
Another solution is to purchase long term care insurance. The reality is that many Americans will need long term care at some point in their lives. The questions is WHEN they are going to need it. It may be soon or it may be far down the road.
Here are some things to look for when shopping for a long term care policy:
1. Purchase a policy from a company with good financial strength. Be sure they will be there when you have a claim.
2. Select an agent you feel comfortable with and who is experienced with long term care.
3. Consider the purchase of compound inflation protection because the cost of care is expected to increase over the next 10-20 years.
4. Weigh the difference between a lifetime policy and a limited benefit policy. In many cases, the premium difference between a five-year policy and a lifetime policy is minor.
Mike Herman is President of Golden Wealth Solutions and a Financial Advisor. If you have any questions or would like information on long term care, please call 303-456-1913