Many seniors have taken the time out to plan for retirement. However, there is a big mistake that most seniors are making. They do not have long-term care insurance. Most adults will require long-term care at some point. Long-term is very costly.
It costs an average of $43,125 per year to live in an assisted living facility. It costs an average of $82,125 per year to live in a nursing home. If you want to have your own room at the nursing home, then you can pay up to $92,345 per year. Many people are not concerned about the cost because they think that Medicare will cover it. However, Medicare may only pay a small portion of the cost.
Long-term care insurance can greatly offset the cost. Seventy percent of people who are over the age of 65 will need to get long-term care. However, only 14 percent of people have long-term care insurance. Less than 1/3 of people believe that they have enough money to pay for long-term care.
Long-term care cost an average of $3,400. That is a lot of money. Many people consider this to be a waste because they may never need it. However, 20 percent of seniors will require long-term care for five years or more. Long-term care insurance is a lot less expensive than what one would spend on an assisted living facility or nursing home.
The best time to get long-term care insurance is while you are in your 50s. You will need to compare the costs of different insurance providers. You will also need to read the fine print so that you will know exactly what type of insurance you will be getting. If you apply for insurance while you are in your 50s, then you may be able to get a health discount. It is also important to note that you will be more likely to be approved if you apply for long-term care insurance while you are in your 50s.