Modern medicine has increased lifespans exponentially over the past 60 years. The sad reality, though, is that as people age, they need more long-term care. This type of care is extremely expensive, costing more than $10,000 a month in some cases. Some solutions have been formulated to combat this problem, including long-term care insurance. But as with anything, there are pros and cons to long-term care insurance, and there are many concerns you should address before investing in that type of insurance.
Long-term care insurance is often marketed as providing protection against the high costs associated with skilled nursing facilities and other long-term care. The problem is that long-term care insurance comes with many restrictions and requirements and may only provide a certain amount of protection from long-term care costs—sometimes less than what you may have spent in insurance premiums.
These policies may not cover assisted living facilities. And the fact is that most seniors cannot afford to keep paying long-term care insurance premiums during their later retirement years, typically just before the point when they would have a need for a stay at a long-term care facility.
With all this being said, however, there are still situations where long-term care insurance may be a good investment. Most financial experts state that paying long-term care insurance premiums that amount to 5% or less of your monthly income is a good idea, as long as you consider that income will drop and premiums will rise as you age. This is why it’s important to consult with an Ohio elder law attorney, as well as a financial advisor, before you decide to commit to long-term care insurance. An elder law attorney can review your individual situation and advise whether or not such insurance is necessary, and can work with you to determine what your financial needs and opportunities may look like as you age.
For more information about long-term care insurance and to see if it’s the right choice for your situation, or if you’d like to review your options concerning long-term care, please contact our elder law office at 877-653-3450 to schedule an appointment.