According to Fidelity’s Retiree Health Care Cost Estimate, a 65-year old couple (who retired in 2016) will need an estimated $260,000 to cover health care costs in retirement. This is a six percent increase over the estimate of $245,000 for 2015, and the highest estimate since calculations began in 2002. (Source)
Long Term Care is a Woman’s Issue
Older women are 50% more likely than older men to live in poverty.
(Bureau of Labor Statistics)
Since women live longer than men (which means we’ll require more financial assets for retirement), putting long term care coverage in place is a crucial element of a sound retirement plan. In fact, I strongly believe that no retirement plan is complete without long term care coverage in place. This is especially true for women.
Women generally have much longer stays than men in nursing homes.
(Spillman and Lubitz, 2002 as cited in Prof David Babbel’s essay: “Lifetime Income for Women: A Financial Economist’s Perspective.” Wharton School, University of Pennsylvania)
One reason for this is that women are generally younger than their husbands and provide compassionate home care for them in their declining years, delaying the time before which they need to be cared for in a nursing home. Less than 10% of women, on the other hand, have a companion by the time their health declines. Which means they seek institutional care at an earlier stage of their declining health.
Ironically, in many cases the couple’s financial reserves have already been expended on the husband’s care, leaving little left for the woman. Hence, the crucial need for long term care.
Long term care insurance coverage gives you options in your golden years, and helps you maintain a life of dignity that you may not be able to afford otherwise.
New Ways to Pay for Long Term Care Insurance
These days there are many new hybrid products on the market, making it possible to invest in LTC insurance without the threat of wasting those dollars should you not need it in the long run. These new hybrid products are called asset-based long term care insurance or linked-benefits, because they are linked to other insurance products like life insurance or annuities, which allows you to buy long term care coverage for pennies on the dollar.
Should you never need to use your long term care coverage, the benefit would go to your beneficiaries upon your passing (less any withdrawals you might have made from the policy).
When Should You Get Long Term Care Insurance?
Since the status of your health will determine your ability to even get coverage, the ideal time to acquire long term care coverage is in your fifties. But many people don’t seriously consider LTC until they’re in their sixties. If you have a family history of medical conditions, obviously, you’ll want to inquire about coverage sooner.
Long term care insurance is an underwritten product, so getting coverage before any serious medical condition shows up is key to keeping your premiums lower.
What’s the Process for Getting Long Term Care Insurance?
To get started, we’ll have a confidential discussion of your long term care concerns and needs. Then we’ll request quotes from top-rated carriers for the best coverage possible with the lowest premiums available.
There is no charge or obligation for this service. You’ll be more informed about your coverage options, and possibly even surprised at how reasonable LTC coverage can be for you.
Are you ready to discover your options for long term care? Call me at 1-831-641-7127.
Or simply submit your information below and someone from our office will be in touch with you shortly.
I look forward to speaking with you soon!