Financial and Retirement Planning Blog

The Cost of Long-Term-Care

Long-Term-Care is something that some Americans rarely discuss. This underdiscussed topic is something that could be life-changing for families, potentially saving them thousands in the long run. If you are in a position to have the conversation, the best time is to have it before it is necessary.

What is long term care?

Long-Term-Care is available encompasses all services that include personal care needs. Most long-term care isn’t covered under conventional policies. A long term care policy offers coverage for everyday activities and living support.

Impact of long-term-care for families

Long term care is utilized by 12 million Americans. According to research by the Bipartisan Policy Center, only 11 percent of seniors age 65 entering retirement have long term care policies. The growing number of aging seniors relying on Medicaid will need assistance with nursing home care.

Expenses of long term costs are underestimated

According to a Genworth study, a private room in a nursing home averages $97,500 in 2017. A year in an assisted living facility was $45,000. Over the past five years, the costs of care increased between 3 percent and 4 percent each year. Time spent in a nursing care facility can cost hundreds of thousands of dollars over one’s lifetime. A semi-private nursing home room can cost $7,418, according to a Genworth Cost of Care Survey. Most families will find it difficult to handle the out-of-pocket costs independently. Most people turn to alternate sources to assist with meeting care needs.

Choices of the care needed

When resources are limited, families will have to make tough decisions. The costs could be significant for families, so planning for long term care is essential. As resources diminish, tough decisions may have to be made that could affect the quality of care provided to those in need of the care. Long term care evaluations assists with managing the costs that come with caring for a sick person. If planning is done well enough in advance, you will be able to manage care costs using a combination of long term care insurance and other resources.

Life expectancy

The average person has a life expectancy of 78.8 years according to the CDC. If life expectancy is nearing 80 years, it is imperative that people plan for long term care. Only 11 percent of people with care means that the remaining 89 percent of households will likely experience hardship if the need for long term arises.

Long term care planning is one of the most overlooked topics, but it is an important discussion to have. People must be prepared to discuss the tough financial challenges that comes with managing the personal care needs of a family member like they would retirement plans. All people are encouraged to have this discussion sooner rather than later given the financial implications that come with being unprepared.

Jason Bergey
Pennsylvania Wealth Management
http://pawealthmanagement.com/
(717) 303-1999

Sources: Hyperlinked In Article

Investment Advisory Services offered through Retirement Wealth Advisors, (RWA) a Registered Investment Advisor. Pennsylvania Wealth Management and RWA are not affiliated. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

Investment Advisory Services offered through Retirement Wealth Advisors (RWA), a Registered Investment Advisor. Pennsylvania Wealth Management and RWA are not affiliated. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

This information is designed to provide general information on the subjects covered, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Pennsylvania Wealth Management and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney.

Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurer. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by Retirement Wealth Advisors.

Million Dollar Round Table (“MDRT”) is a membership organization. Qualifying criteria for membership includes attaining specified levels of commissions earned, premiums paid or income earned on the sale of insurance and other financial products. MDRT membership requirements include the payment of annual dues, compliance with ethical standards, and maintaining good standing with an MDRT-approved professional association. The MDRT logo and/or trademarks are property of their respective owners and no endorsement of Jason Bergey or Pennsylvania Wealth Management is stated or implied. MDRT and Retirement Wealth Advisors, Inc. (RWA) are not affiliated.