Long-Term Care and Disability Insurance
Long-Term Care Insurance
If there is a single unsolved problem in retirement plans for middle to upper class adults today, its what to do about a long-term care issue, should one arise. Very high net worth individuals can plan to self-fund these costs and those without significant financial assets will be able to rely on Medicaid once their nest eggs are exhausted. 52% of people turning age 65 will need some type of long-term care services in their lifetimes. 58% of women and 47% of men aged 65 or older will require such services. The median annual cost of adult day care (five days/week), 2017 is $18,200. The median annual cost of assisting living facilities in 2017 was $45,000 and for nursing home costs in a semi-private room were $85,775.
A discussion on Long-Term Care planning is a must. Thankfully, there are several solutions to fulfill these needs and we can determine the best course of action to preserve our client’s nest egg before such a need arises.
Research indicates that one-third of employed Americans will become disabled for at least 90 days at some point in their career. Yet, lack of disability insurance is a common financial error. An unforeseen injury or illness could put workers at risk of losing their homes and their investments. Mortgage foreclosures due to disability occur 16 times as often as they do for death. Disability insurance can provide peace of mind for families dependent on the incomes of their breadwinners for day-to-day needs. Coverage can be obtained for both short term and long term disability and needs to be considered to protect and secure a family’s nest egg.