November is Long-Term Care Awareness Month
by Brandon Miller on Nov 7, 2018
Thanksgiving is just ahead on the calendar – a distinct reminder of the love, friendship, and community that makes our lives so special. We can also be thankful for our health and wellbeing; we all hope to sustain our good health well into retirement. Even so, it is not unusual to think about what would happen in case of a nursing home stay or some other type of long-term care scenario. How would your retirement savings be affected?
As November is Long-Term Care Awareness Month, we feel this might be a good moment to share a few facts about this:
- The Department of Health and Human Services projects that at least 70% of Americans older than 65 will need long-term care. More than 40% will require nursing home stays.1
- If you end up needing nursing home care, you may risk draining your retirement assets. The average monthly cost for a semi-private room in a nursing home is now $7,441, according to Genworth Financial’s respected Cost of Care Survey.2
- Medicare will not take care of your long-term care needs. Medicare only pays for the cost of a skilled nursing facility for 20 days; it then requires a significant co-pay from you for the next 80 days. After 100 days, Medicare’s long-term care coverage runs out.3
- Medicaid will pay for long-term care, but only once your income and assets fall below state and federal thresholds.3
- Long-term care insurance isn’t just limited to nursing home coverage. Long-term care is defined as any assistance provided to someone who has a condition or illness limiting the ability to perform normal daily activities. This can range from help with eating or dressing to forms of rehabilitative and therapeutic care.4
As always, if you have questions please contact our office.
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security. It is only intended to provide education about the financial industry. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. Any past performance discussed during this program is no guarantee of future results. Any indices referenced for comparison are unmanaged and cannot be invested into directly. As always please remember investing involves risk and possible loss of principal capital; please seek advice from a licensed professional.
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1 - entrepreneur.com/article/320518 [9/25/18]
2 - genworth.com/aging-and-you/finances/cost-of-care.html [10/9/18]
3 - cbsnews.com/news/long-term-care-misconceptions-retirement/ [7/7/17]
4 - agingcare.com/articles/definition-of-long-term-care-insurance-143436.htm [10/24/18]