How Long-Term Care Can Prevent Retirement Disasters

(Newswire.net — July 5, 2017) Syosset, New York — 

Many Americans are under prepared for retirement. Nearly half of families have no retirement account savings at all and the average retirement savings of all families is less than $100,000. That number doesn’t tell the whole story. however. Many families have zero savings and since super-savers can pull up the average, the median savings or those at the 50th percentile may be a better gauge. The median for all families in the U.S. is just $5,000, and the median for families with some savings is $60,000.

There is one factor that could derail a family’s retirement plan – the possiblity of a major health crisis in old age. If the average American family is faced with a suddent medical emergency that costs hundreds of thousands of dollars it could completely destroy their retirement plan. In fact, it’s doubtful that even the better off amongst us could withstand that.

Forbes magazine called this the “Wildcard that could destroy your retirement.” Time called it “The retirement crisis nobody talks about.” If you became disabled and needed daily help you’d need extra money for assistance, but Medicare doesn’t cover it. Long-term care insurance could help offset these costs.

Here are some things to keep in mind:

• 70% of people over 65 will need some form of long-term care at some point. 
• For married couples, the chance that one spouse will need long-term care rises to 91%. 
• People living alone are more likely to need some sort of home health care. 
• Women outlive men, are more likely to live alone and need some sort of home health care.  

No wonder so many people are worried that they won’t have enough money to cover healthcare costs in retirement, let alone make it through retirement in the lifestyle to which they are accustomed. Taking all this into consderation, it’s clear that long-term care insurance is a necessity rather than a luxury.

The risk is high for the insurance companies and so the costs can be high. But as lifespans gets longer, the chances that you’ll need long-term care increases. You owe it to yourself to investigate the options and make an informed decision on the subject.

Starting early, limiting years of coverage, and accepting longer elimination periods before coverage kicks in will all help keep premiums tolerable. The bottom line is that you don’t want to have an unfortunate turn of events ruin your retirement, or indeed your life.     

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