Not every financial product and service currently available has intrinsic value. Just like any other product, financial ones need to be measured against the individual’s needs, goals and budget. This may mean making some painful cuts in some places to make room for more important types elsewhere. Insurances, for example, can be both valuable and cost-effective. You just need to know which types are worth it and which are worth skipping.
For seniors and many older adults, this decision takes on added importance. With a limited budget often dependent on retirement savings and Social Security, it’s crucial not to overspend. But it’s equally as important to not leave yourself vulnerable and unprotected. Fortunately, long-term care insurance can help. This unique form of insurance, which helps seniors pay for services that their regular health insurance wouldn’t fully cover, can go a long way to making their golden years safe and fulfilling.
In fact, there are multiple reasons why seniors should buy long-term care insurance, some of which may be less obvious than others. Learn more about your long-term care insurance options here by getting a free price quote.
4 reasons why seniors should buy long-term care insurance
Here are four great reasons why seniors should buy long-term care insurance now.
Your regular insurance may not be enough
Health insurance and Medicare can be sufficient for a wide array of services but it simply may not be enough. If you need a caretaker to help you bathe, get dressed, get in and out of bed or more, both of those coverage types are likely to come up short.
Long-term care insurance can fill the gap and help pay for additional services you may need. This can begin with daily visits from a healthcare professional but may ultimately morph into full-time care. Either way, long-term care insurance can help cover the bill you may otherwise have been stuck paying in full.
Long-term care costs are high
You may be financially secure currently, but if you think you’ll need additional services in the future, it may be smart to act now. That’s because long-term care costs are elevated and unlikely to get cheaper in the future. And moving into a facility that can provide this care could be out of your range without insurance to help.
“The median cost of assisted living facilities is $148 per day, which equates to $4,500 per month, or $54,000 per year–depending on your state of residence,” SeniorLiving.org reports. That could prove to be a price tag too high, even if your savings are robust at the moment.
Finances are tighter than usual
And, chances are, your finances are struggling a bit this year. With stubborn inflation making everything from gas to groceries more expensive, and indicators that it’s not coming down any time soon, you may not be in the financial position you were just a few years ago.
Combined with interest ratesthat are making it significantly more expensive to borrow, it may make sense to have long-term care insurance to assist. Every little bit helps.
To protect your savings
Seniors have worked hard to build a nest egg to leave for their loved ones and beneficiaries. It makes sense, then, to do everything possible to keep this money intact for the next generation.
If you don’t have long-term care insurance and find yourself needing the care a policy can provide, you very likely will have to tap into the money you planned to pass on to others. Granted, this may be a worst-case scenario, but it can very likely be avoided with a long-term care insurance plan instead.
The bottom line
It may seem counterintuitive to pay another bill to avoid other ones in the future. But for many people, long-term care insurance can be well worth it. Simply crunch the numbers by comparing costs without a plan versus what it would cost with one to see how much you could save.And remember: your regular insurance may not be enough. And when stacked up against the rising costs of long-term care and the current state of the economy, a long-term care plan could go a long way by protecting you and your savings.