How to Ensure You’re Cared For in Old Age
Medicare does not cover the costs of extensive long-term care. This may not seem that important to you now, but it is — very much so. After all, there’s a70 percent chance that you’ll require a stay in a nursing home, assisted living facility, or another form of support during your retirement, and that doesn’t come cheap. A private room in that nursing home, for example, costs almost $100,000 a year on average. Other services aren’t cheap either. You should start planning to meet this financial burden now, even if you haven’t retired.
Although LTC insurance is expensive, with premiums averaging at $3,490 per year for a 60-year-old couple with a benefit of $150 per day, you’ll be at ease knowing you’ll get the long-term support you need, says a writer with the Motley Fool. It covers everything from physical therapy to Alzheimer’s care, and you can keep costs down by signing up early.
Annuities, meanwhile, are contracts between you and an insurer under which you make regular payments in exchange for disbursements in the future, serving as part of your retirement income that could be used for medical expenses. Companies have even created hybrid annuity and long-term care policies, which are growing in popularity.
Additionally, you can look into a living benefit, which is a rider you add to your life insurance policy that allows you to withdraw from your death benefit while you’re still alive, with the money often going to pay for long-term care. However, you may not be eligible if you’ve already been diagnosed with certain health conditions.
If you own a home, you can use equity to help with the costs of care. With a home equity loan, you use your property as collateral to borrow money at relatively low interest rates, with the amount you get determined by the home’s value, your income, your credit history, and how much of the mortgage you’ve paid off.
Should you need, you can also sell your home to help pay for medical expenses. This is a viable option if you’re moving into a retirement community, assisted living facility or nursing home and your property has a relatively high value, so it’s well worth the effort to do some research into the local market. To put things in perspective, homes in Victoria, Texas, were snatched up at an average of $180,000 during the last month.
Assess Future Needs
Assessing your medical future has become easier in recent years as science continues to discover links between genetics and disease. For example, if you have a close relative with Alzheimer’s, that indicates a greater risk of contracting this condition so you can anticipate the level of care you’ll need. Your lifestyle and personal habits also play a large role in your health.
With a greater understanding of the difficulties you face, you can examine the different types of care available. The early stages of some conditions may only necessitate custodial care at home. As you advance in age, the need for adult day care, assisted living, a nursing home, or memory care become more likely.
You’ll lessen your care requirements by improving your diet and getting more exercise. When it comes to meal planning, bear in mind that you need fewer calories as your metabolism has slowed down. Also, a wide variety of vegetables and fruits is highly recommended to avoid nutrient deficiencies. As for staying active, aim for a mix of cardio and strength training.
Making home modifications can delay your need for an assisted living facility or a nursing home by lowering the chances of a nasty fall while making life easier overall. A researcher with ConsumerAffairs recommends installing grab bars in the bathroom along with a ramp for the home’s entrance, which greatly improves mobility.
Financing long-term care is a tough topic to think about, but at least there are options on the table. Now’s the time to make some choices so you can rest easy and enjoy your golden years.
Contact Victoria Insurance Group today to see how we can help you with Long Term Care Insurance!
Guest writer, June Duncan, caregiver and author of the upcoming book, The Complete Guide to Caregiving: A Daily Companion for New Senior Caregivers shares her insight on the day-to-day struggles of caregivers, barriers to accepting assistance, the issues those barrier causes, and home care companies like Caring Senior Service as respite options.
You can sign up to receive alerts about June’s new book, as well as resources for family caregivers by visiting: http://riseupforcaregivers.org/books/