Retirement Planning
Here is a retirement planning fact that does not get nearly enough attention: more than half of Americans will need some form of long term care in their lifetime. And the cost of that care is staggering. The median annual cost of a nonmedical caregiver is around 0,000. A nursing home can run well over 00,000 per year.
What Long Term Care Actually Means
Why Medicare Falls Short
Your Options for Covering Long Term Care Costs
Hybrid life insurance with long term care benefits. These policies combine life insurance with a long term care rider. If you need care, the benefit pays for it. If you do not, the death benefit goes to your heirs.
Health Savings Account (HSA). If you have an HSA, long term care insurance premiums are a qualified medical expense, which means you can use pretax dollars to pay for them.
Long term care planning is not a conversation for your 70s. The best time to explore your options is in your 40s or 50s, when you are still healthy enough to qualify for coverage at reasonable rates. Talk to a financial advisor or insurance professional who specializes in this area. Ask about your options. Get a quote. And make a plan before you need one. Your future self is counting on you.