Who Plans for Long Term Care?
Are you wondering who is concentrated on long term care planning? Well, there are three specific groups of individuals.
The first group is comprised of businessmen and those in lucrative jobs who have a good sum of assets to protect. Then there’s the group of highbrows who don’t want to be counted in the statistics of uninsured individuals. Lastly, we have the group of individuals who have witnessed the sudden financial downfall of their parents resulting from high long term care (LTC) costs.
Although not many businessmen and those with important positions in big corporations have been swayed by the idea that they will need serious care in the future, they went and purchased long term care insurance (LTCI) policies to ensure that their wealth will be protected from the high cost of care.
Even the richest of the rich in the country was taken aback by the projected cost of care in 2030. According to the financial experts and LTC specialists, LTC costs will increase fourfold and if one plans to self-insure he will need more than a million in assets.
Exaggeration? No, it’s a fact that’s why should you decide to self-insure 20 years from now you run the risk of using up all of your resources down to the last penny in less than a year from the moment that you require care.
Imagine a home health aide charging $76 an hour to provide you assistance with the activities of daily living. If you don’t think that’s lavishness, what about spending $13,044 monthly for an assisted living facility?
Meanwhile, nursing homes will have an estimated annual rate of $310,980 in 2030. Anybody who is expecting to receive $500,000 upon retirement should start thinking of other ways to fund their future health care needs. Obviously, this amount will only be enough for a year’s stay in a nursing home.
There’s going to be a rapid increase in the rates of LTC facilities since the industry is expecting the elderly population 65 years and older to double in 2030 and thus making them 70 million.
Reasons for Long Term Care Planning
Aside from the wealthy people, the intellectuals in society have also invested their money into LTCI policies lest they be dubbed as inane.
More than receiving topnotch care, these people want to retain their dignity even when the time comes that they cannot function normally anymore due to an illness or injury. Nothing can be worse than having other people look down their noses at you, they reason.
Among these groups, the one comprised of individuals who have seen how their parents’ money was dwindled away by nursing home expenses is worthy of applause. It goes to show they’ve learned an important lesson from their parents’ mistakes and now they refuse to end up having the same fate.
Long term care planning is not a choice but a prerequisite to retirement. If you don’t know where to start, perhaps you should sit down and talk about it and long term care quotes with your family. Avoiding the cost of care is, after all, more affordable than facing it head-on.
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