We have all heard the horror stories. A parent has a stroke and can no longer care for him or herself. The parent must go into a nursing home. How will the parent or their children pay for such care?
The latest statistics indicate that the average cost of one year’s stay in a nursing home is approximately $72,000. This cost can quickly drain anyone’s nest egg, especially if his or her stay in the nursing home is prolonged.
Statistics indicate that 40 percent of people over 65 are likely to need long term care. As Baby Boomers age, experts widely expect long term care to be the next U. S. health care crisis.
Obviously the time to plan for such is earlier. HMOs, Medicare, and Medigap insurance do not pay for most long-term care expenses. People can certainly self-fund for their care. However, few people have the kind of cash available for to spend exclusively on several years of long term care.
Another approach is to purchase long-term care insurance. Purchasing long term care insurance is another approach to help avoid depleting assets and even being able to have care in home, rather than a nursing home. Consider purchasing an LTCI policy if some or all of the following apply:
you are between the ages of 40 and 84
you have significant assets that you would like to protect
you can afford to pay the premiums now and in the future
you are in good health and are insurable
The State of Colorado now offers a Partnership Plan, which reduces the amount of assets that Medicaid requires the individual to deplete before paying for nursing home expenses.
To find out more information about Colorado’s Partnership Plan or long term care insurance, call 303-894-7499 or go to .
If you are in your 50s or older, the present is the best time to plan for such possible events. Once you are in an incapacitated position, your life is much easier if you know how your care will be paid for.
For more information or to find a financial planner, contact the Financial Planning Association at .
Wendy W. Spencer, CFP is a registered representative offering securities through Money Concepts Capital Corporation, Member FINRA/SIPC.
