What You Need To Know About Long-Term Care Insurance And Retirement

If you’re in the midst of retirement planning, then you’ve probably encountered more than a few advertisements for long-term care insurance.  If you didn’t seize the opportunity to take advantage of this necessary expense, then find a provider quickly: long-term care insurance is one of the most important components of a healthy retirement, as it protects your finances (and that of your family’s) once you’re unable to look after yourself.

If you thought that you could depend on your own savings and investments, Medicare or your children to pay for nursing home expenses, think again!  Medicare will only pay for medical expenses, not those incurred by day-today custodial expenses (such as meals, cleanings, etc).  Additionally, with continuing care retirement communities getting more expensive every year, you could stand a good chance of wiping out your retirement savings within the first couple of years alone.

Many people often mistake long-term care insurance for disability insurance, but there are important differences: disability insurance will provide you with income in the event that you can’t work, whereas long-term care insurance will cover the costs of caring for you when you’re unable to look after yourself.

And if you think that your children will be able to look after you, it’s best to not count on them 24/7 for physical and financial support.  Sure, your son or daughter might not mind if you move in with them, but what if their spouses object?  What if you need more care than they can provide, especially if they work long hours or have large families to support?  These considerations are important to factor in, as it could mean the difference between a comfortable retirement and one that’s hanging by a thread.

If you’re in your late 40s or 50s, buy your long-term care insurance now, as rates are at all-time lows for the youngest of the baby boomers.  Additionally, you run the risk of being locked out of your insurance should you purchase a policy after you develop a medical condition.  Even if you feel young and independent upon approaching your retirement age, it’s best not to chance it when it comes to long-term care.

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!

Authored By Kenneth Himmler, Sr.