- Who pays the bill?
- Medicare doesn’t cover LTC if that’s all you need, and when it does cover costs, it’s only available for a specific number of days. If you need custodial or more extended care, who pays the bill?
- If you’re hoping to stay home, you may want to consider a LTC policy that provides coverage irrespective of where you receive care.
- Are the odds against you?
- Adults over age 65 have a better than 70% chance of needing LTC and women stay in long-term facilities an average of 1.5 years longer than men.2
- If you think that your savings is enough to get you through, consider an insurance policy that covers your LTC so you have the funds you need to support your lifestyle or to leave to your beneficiary.
- Longevity increases risk!
- Along with scientific advancements comes the benefit of living longer. Unfortunately, longer lifespans bring with them increased living costs, with the national average annual cost of an assisted living facility estimated to nearly double to $100,456 by 2042.3
- If you’re assuming that your LTC will be in a facility, consider the numbers of Americans that’ll be over age 65 needing the same care as you. A LTC policy may afford you the services you need in the comfort of your own home.
- Sharing isn’t caring!
- With over 80% of home care being paid for by unpaid caregivers,4 sharing the cost of your LTC with your family can cause riffs if your family isn’t financially prepared to fund your needs.
- If you’re looking for an upside to all of this, depending on your situation, there may be several tax incentives and deductions surrounding LTC insurance. Consult your tax advisor to discover what’s available in your state.
Adapted from SingleCare2
Adapted from Genworth3
Adapted by acl.gov4
Securities offered through SCF Securities,Inc. Member FINRA/SIPC 155 E. Shaw Ave. Suite 102, Fresno, CA 93710 • (800) 955-2517 •Fax (559) 456- 6109. SCF Securities, Inc. and Creative Financial Strategies LLC are independently owned and operated. www.scfsecurities.com Note: Securities offered through SCF Securities Inc., Investment Advisory Services offered through SCF Investment Advisors, Inc.This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.
