The word has gotten around about the longevity crisis – people are living longer and it’s a two-edged sword.
While more time in the sunshine enjoying life seems an unalloyed boon, there’s a downside or two, like running out of money in retirement, or facing elevated medical expenses along the way. The need for long-term healthcare, administered in a nursing facility, hospice or even at home, is particularly acute, as almost everyone who makes it past retirement age is expected to need it.
Long-term healthcare insurance is now perceived as a must-buy, despite some of the difficulties experienced by the industry. High premiums are the most obvious downside to these policies, but the cost of care without insurance is even more prohibitive, and indeed, paying for long-term care without an insurance backup could have devastating consequences for one’s financial assets.
Let’s assume you have long-term care insurance in place. Can you now sit back without a care? Not hardly. Unfortunately, there are certain needs that LT coverage won’t meet. You’ll need to know what these things are and then budget accordingly.
LT coverage shines when you’re in need of focused medical care. But what about the years – the great majority, one would hope – when you’re relatively healthy and spry? Even during the happy times, seniors can need assistance. As an example, you might be perfectly capable of carrying out everyday tasks, like dressing, cooking for yourself and taking care of the shopping. However, declining eyesight and slowing reflexes might mean that you need a driver – not a heavy expense, perhaps, but more than a-once-in-a-while need. The cost of a dedicated driver or regular taxies will need to be built into your budget.
This points to the real issue at hand: more than coverage, one needs access to funds in order to live comfortably in retirement. Of course, in the extremity, insurance is just the thing to provide those resources. Some needs are outside the boundaries of what insurance can cover, though, suggesting that a retirement plan needs balance in order to support the good life.
For more information, please read:
What Your Long Term Care Insurance Won’t Cover And How To Prepare For It | Forbes