Baby Boomers Required to Address Long-Term Care Requirements
A new research study by the American Council of Life Insurers (ACLI) shows that baby boomers require to take notice of the extremely real possibility they might require long-lasting care. The reason: escalating long-term care costs.
“Long-Term Care Insurance or Medicaid: Who Will Pay for Baby Boomers’ Long-Term Care?” sounds the alarm on a possible national long-term care crisis. More importantly, it is a call to action for individuals to include long-lasting care in their retirement planning, said ACLI President & CEO Frank Keating.
The research study shows that an one-year stay in a nursing home averages nearly $70,000 for a personal room or more than $61,000 for a semi-private space. By 2030, the same stay in a semi-private room will cost an approximated $190,000, more than tripling over the next 25 years. A lot of Americans can not save enough to cover these high expenses on their own.
“Americans are living longer than ever previously. That is excellent news, however it has some threats. One of those dangers is that many future retirees will be dealing with huge long-term care costs,” Keating stated.
The concern is of specific interest to women because they tend to outlive men. A 65-year-old woman has a 50 percent possibility of needing retirement home care in her lifetime-an expense that might possibly eliminate her retirement savings.
What can be done? Life insurance companies suggest long-term care insurance.
Long-term care insurance is an essential element of a sound monetary prepare for retirement. It helps individuals keep self-reliance in retirement if they require long-term care services. Long-term care insurance policy holders don’t have to depend on federal government programs or their household to spend for care. Additionally, the product has evolved over the years. It now provides a wide range of services in a variety of settings. Some policies may consist of compensation for break care, medical devices, care coordination services and even house adjustment.
“Long-term care insurance provides retirement security to millions of Americans. But more need the security it offers. With long-term care insurance as part of a retirement strategy, Americans are better geared up to secure their life-long savings and maintain their standard of life,” Keating said.
Long-term care insurance policy holders don’t have to rely on government programs or their household to pay for care. Some policies may consist of repayment for break care, medical equipment, care coordination services and even house modification.
“Long-term care insurance provides retirement security to millions of Americans. With long-lasting care insurance coverage as part of a retirement plan, Americans are better geared up to protect their life-long cost savings and maintain their requirement of living,” Keating stated.