Long-term planning for long-term care

It’s a new year, and for many Americans, it’s smart to consider expanding or modifying insurance plans to suit your needs better.

One thing folks should consider is long-term care (LTC). These plans typically help cover services like in-home care, stays at nursing homes and assisted living facilities, and adult daycare programs. Traditional insurance plans and Medicare/Medicaid often cover only limited aspects of LTC and may prove inadequate.

People need care over time because they’re seriously ill, recovering from an operation, or have an impairment. It’s smart to prepare for such hardships by enrolling in an LTC health insurance program. Yet, as of 2020, only 7.5 million Americans had LTC coverage.

Without LTC insurance, people have to pay out of pocket for care. That can cost more than $50,000 a year in an assisted living facility or more than $100,000 in a nursing home. Medicare covers only short-term stays. Long-term care insurance can protect your nest egg.

How about costs? An LTC plan will cost a 55-year-old male about $950 a year and a female about $1,500. For a 65-year-old, the plan would cost $1,700 and $2,700, respectively. If you select a plan with inflation adjustments, costs go up.

Keep in mind these are only averages. Like traditional insurance plans, you can select more basic LTC plans that offer more affordable premiums. Likewise, you may be able to add LTC coverage to existing health insurance plans and save money.