Amy Feldman (Barron’s) has recently published an article entitled, “Thinking Long Term” (November 09, 2013). Provided below is the abstract to the article from Barron’s:
Thinking Long Term
Are you Skeptical of long-term care insurance? You're not alone, and more and more advisors are arguing that the benefits outweigh the costs.
The numbers for long-term care speak for themselves, what happens when you do not have money to sustain yourself and need long-term care? Most people think that Medicare or health insurance will have you covered, but in reality that only covers a very short stay if you end up needing long-term care. Even if you have saved a respectably amount for retirement, long-term care costs can exceed $100,00 a year and you may be faced with having to spend down your assets to qualify for Medicaid.
The aging of the U.S. has changed retirement planning dramatically, at some point many of us may be faced with Alzheimer’s or other forms of dementia, arthritis, diabetes, etc. due to the fact that we are living longer.
According to Genwroth’s 2013 cost-of-care survey, a median cost of a private room in a nursing home is $230 a day, that is equivalent to $83,950 a year and if you hope to choose the nicest facility in your area, expect to pay more.
For more information on why Long-Term care planning is important, continue reading the article “Thinking Long Term” by Amy Feldman.