Long Term Care Insurance and Retirement Planning
Long term care insurance can be an important part of retirement planning. This coverage pays for expenses related to long term care that medical insurance or Medicaid doesn’t cover. You might be years away from retirement, but you need to think of when you do retire. It’s possible that you will need long term care.
Long term care is for people who need assistance in two or more daily living activities such as:
• Cleaning house
• Taking medication
Many people over the age of 65 will need long term care support services. The average daily cost of these services is over $200. Medicare and health insurance does not cover the cost of this type of care. Without long term care insurance, you’ll have to pay everything out of pocket. Even if you receive care at home from a family member, you might still need professional in-home or nursing home care.
This type of coverage is good if you can get it from work. Monthly premiums on private insurance can be expensive. Getting coverage through your job is cheaper. You can take advantage of lower monthly premiums while securing your retirement savings.