But what happens in the case of an accident or major illness like cancer, stroke or Alzheimers? Have you saved enough to cover any extended healthcare costs during your retirement?
Did you know, after age 65 half of us will require professional care to help with basic everyday activities, and the average cost is over $140,000.1
People may be surprised to learn that regular health insurance doesn’t cover long-term care services such as assistance with routine daily activities, like bath, dressing, or getting in and out of bed. Medicare will cover a short stay in a nursing home, or a limited amount of at-home care, but only under specific conditions. Long-term care insurance (LTCi) can help you cover the costs of care associated with a chronic medical condition, a disability, or a disorder such as Alzheimer’s. Depending on the policy options you select, LTCi can help you pay for the care you need, whether you are living at home or in an assisted living facility or nursing home. Some plans may also pay expenses for adult day care, care coordination and other services. People who purchase LTCi commonly have goals such as remaining at home for as long as possible, not relying on family to provide long-term care, and not using retirement savings to pay for LTC services.
By planning today you can feel more confident knowing you have a measure of financial protection.
1 Long-Term Services and Supports for Older Americans: Risks and Financing Research Brief, Urban Institute, 7/1/15, revised February 2016.