An important part of any retirement portfolio is a long-term care (LTC) insurance policy to protect one’s assets in case of major illness. Usually, the LTC kicks in to pay in-part, or entirely, the costs of a nursing home, or in-home assistance.
Investors nearing retirement, and who maintain a healthy lifestyle, are smart to leverage their good health to purchase an LTC policy early-on: Generally, ‘good health’ can translate to lower LTC premiums.
Even with a pension, and sizable Social Security payments, many retirees may still need to turn to their personal investments to pick up the difference.
For example, if the monthly cost for a nursing home stay is $8,000, and all of your income sources total $5,000 a month, then the $3,000 will still have to be met. With an LTC policy paying $3,000 a month the shortfall can be met.
In some cases, an LTC policy has an option to elect “in-home” assistance instead of the traditional nursing home route, as well as in an ‘assisted living’ setting.
Policies can usually cover the following situations, as noted on the AARP website:
- Home care: such services as bathing, grooming and help with housekeeping.
- Assisted living
- Adult day care: A program outside the home that provides daytime health, social and other support services in a supervised setting for adults in need of help.
- Respite care: Temporary help to relieve family caregivers.
- Stays in a nursing home
Looking for ways to save on your health insurance, or questions about insurance in retirement? Contact us today for a consultation.