You’ve worked a long time to ensure that you and your family will be financially protected. You’ve also done what you can to prepare for any surprises that the future might bring you. However, even the most well-thought-out strategy can have a wrench thrown into it by the unexpected cost of long-term care.

With Americans living longer than ever these days, most of us will end up needing long-term care in some form. Basic, everyday tasks get more difficult for you as you age. You could get unexpectedly injured or sick that affects your ability to do these things. However, you won’t know for sure whether you’ll end up needing long-term care, how much of it you’ll need, or for how long.

Today, we’re going to walk you through some statistics related to long-term care, as well as a few different ways of covering its cost.

Statistics You Should Know

The duration and level of long-term care varies from person to person. Furthermore, your needs will likely change over time. Here are some statistics you should consider:

• Someone turning 65 right now has around a 70% chance of needing it in some form
• 20% of people aged 65 now will need it for longer than 5 years
• Women, typically, need it for longer than men: Men on average need 2.2 years, while women on average need 3.7 years

Additionally, here are some statistics related to cover the cost of long-term care. It’s important that you know the impact just a few years of having to pay for it can have:

• The typical cost of a year of in-home care, 40 hours of help per week, is $50,918
• The average cost to spend a year in a private, Medicare-certified long-term nursing home is around $107,000
• The average cost for a year in an assisted living facility is around $57,000

Learn Your Options

There are several options out there to cover the cost of long-term care. Below are a few. Before you make a decision, make sure you understand all your options fully, and that you have talked it over with the people you trust: Your loved ones, your doctor, et cetera. Some of your coverage options include:

Medicaid

Medicaid may cover a number of services, including home care (cooking, cleaning, help with other basic day-to-day activities) home health services, transportation to medical care, case management, respite care, and hospice. Medicaid programs vary from state to state. Call your Medical professional for more specific information.

These services may be available through other programs though, too. For example, Area Agency on Aging, or Medicare. One important thing to note about Medicare is how it works. It may cover a maximum of 100 days of services following a hospital stay. Coverage is designed to assist people during short-term recovery, and doe not include personal care or supervision services.

Subsidized Senior Housing

There are state and federal programs to help pay for housing for some seniors with low to moderate incomes. Some of these housing programs also help with meals. Furthermore, they potentially offer assistance with things such as housekeeping, shopping, and doing laundry. Residents typically live in their own apartments, and rent payments are based on a certain percentage of their income.

Group Living Arrangements

Residential care communities and assisted living communities are examples of group living arrangements. The benefit of. a group living arrangement is that you may be assisted in some of the activities required in daily life that you might otherwise have trouble with as you get older. Whether they offer nursing services or not, if they help with medications, et cetera, varies from state to state. Typically, residents of these communities pay a regular monthly rent and some additional fees depending on what type of personal care and services they get.

Hospice and Respite Care

Hospice is a program of care and support for individuals with terminal illnesses. The focus of the service is on helping the terminally ill live more comfortably. Meanwhile, respite care is a short inpatient stay given to a hospice patient, so that their usual caregiver can rest.

Program of All-Inclusive Care For the Elderly

PACE (Program of All-Inclusive Care For the Elderly) is a Medicare or Medicaid program that helps people meet healthcare needs in a community.

If you want more information and resources to help your family plan for the possibility of needing long-term care in the future, visit LongTermCare.gov. 

Paying For Long-Term Care Using an IUL?

Do you have a life insurance policy in place currently? While you may not realize it, some types of life insurance out there may actually be used to cover certain costs while you’re still alive. Purchasing an IUL, or indexed universal life, insurance policy can be one way of saving up money to cover unexpected costs, including the cost of long-term care.

There are a number of benefits to this particular method. Firstly, a very appealing feature of an IUL is that it offers a source of potentially tax-free income. Additionally, you can access the money at any time, and there is no contribution limit. Also, the money is unaffected during the event of a stock market downturn.

You can purchase an IUL to prepare for the cost of long-term care. This way, even if you don’t end up needing long-term care, you can use it to cover other unexpected expenses in the future rather than dipping into your retirement accounts. Contact us to learn more about this potential strategy. Remember: We’re always here to help you stay protected.

Sources: Alc.gov, medicare.gov, and AARP.