A brand-new study by the American Council of Life Insurers (ACLI) shows that baby boomers require to take note of the extremely real possibility they may require long-term care. The reason: intensifying long-term care expenses.
“Long-Term Care Insurance or Medicaid: Who Will Spend For Baby Boomers’ Long-Term Care?” sounds the alarm on a possible national long-lasting care crisis. More vital, it is a call to action for people to consist of long-term care in their retirement planning.
The study shows that a one-year stay in an assisted living home averages almost $70,000 for a private space or more than $61,000 for a semi-private space. By 2030, the same stay in a semi-private room will cost an estimated $190,000, more than tripling over the next 25 years. Most Americans can not save enough to cover these high costs on their own.
“Americans are living longer than ever before. That is good news, however, it has some threats. Among those threats is that lots of future retired people will be facing astronomical long-lasting care expenses,” Keating said.
The concern is of particular interest to ladies due to the fact that they tend to outlast males. A 65-year-old woman has a half chance of requiring assisted living home care in her lifetime-an expense that might possibly wipe out her retirement cost savings.
What can be done? Life insurance providers recommend long-term care insurance.
Long-term care insurance coverage is an essential component of a sound financial plan for retirement. It helps individuals maintain independence in retirement if they require long-term care services. Long-term care policyholders do not need to count on government programs or their families to spend on care. Moreover, the product has evolved over the years. It now uses a wide variety of services in a variety of settings. Some policies may consist of reimbursement for respite care, medical equipment, care coordination services, and even home modification.
“Long-term care insurance coverage supplies retirement security to countless Americans. But more need the protection it uses. With long-lasting care insurance coverage as part of a retirement plan, Americans are much better geared up to secure their life-long cost savings and maintain their standard of life,” Keating stated.