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Long Term Care or Long Term Chaos?

Long Term Care or Long Term Chaos?

August 24, 2016

We all probably know at least one person who is helping care for an ailing parent, grandparent, or even sibling.  We've seen the toll it takes on them, both emotionally and financially.  Yet, nursing homes are still a taboo subject in many homes.  No one wants to talk about the possibility of needed nursing care for themselves or another family member.   It's a scary, uncomfortable subject to think that you may not be able to fully care for yourself, your spouse, or your parents in the future.  But, it is a subject that family should discuss before the time comes.

 If you are one of the many people who've had experience with nursing care, you've already learned that the cost for such care is high, both financially and emotionally. It can be hard to tell a parent that it's time to let someone else help them with their day to day activities, and even harder when you realize that you just don't have the financial resources to fully meet these new needs.   If you haven't faced this need yet, it may be easy to put it off by telling yourself it will never happen to you.  But, before you fall into the trap of denial, let me share a few facts:

  1. Long term illness is one of the top contributors to Bankruptcy in retirement today
  2. The average price for a one bedroom unit in an assisted living facility topped $3900 per month in 2012 and continues to rise*.
  3. Medicare does NOT cover nursing home or extended home care.
  4. After age 65, you have a 71% chance of needing some form of extended care**

These facts can be quite frightening, but there are ways to plan for these expenses.  A sound financial plan and proper insurance, often including Long Term Care Insurance, can help you ease the burden of future care. The "catch", however, is this needs to be taken care before there is a need—and the sooner you build a plan, the better off you will be.

If you would like additional information on what Long Term Care Insurance is and the basics of how it works, click here to order a free copy of our Long Term Care Informer. This publication will give you the information you need to understand how Long Term Care Insurance works.  Then, I highly suggest you work with a qualified financial planner on creating a comprehensive plan that will address your specific needs, assets, and family situation.  If you need a place to start, we'd love to discuss your situation with you. 


  *Genworth Cost of Care Study, 2013

**Brookings-ICF, long Term Care Financing Model, 2004