EFFECTIVE RETIREMENT PLANNING helps to assure financial well-being for your later years. Carefully estimating your future expenses is a critical component of this process. Most people, however, have not addressed the largest retirement expense--health care.
This misunderstanding can lead to serious consequences regarding your retirement lifestyle. The false assumption that Medicare will pay for everything after age 65 ignores the financial impact of Medicare premiums, coinsurance costs, and skilled nursing care (nursing homes, assisted living facilities, or at-home) which is not paid for by Medicare! Conservative estimates show that a couple retiring at age 65 will spend between $295,000 and $360,000, assuming only a 5% rate of inflation, and this does not include the cost of skilled care or nursing homes!
Long-term care (LTC) insurance provides a proactive defense against these rising costs and estate recovery, protecting your assets for your spouse and your heirs. So why do more people not consider this strategy? Some simply cannot afford it (or don't think they can!) Others plan to spend down their savings until they qualify for Medicaid, but this will not protect their larger assets (e.g., farms, businesses) or provide freedom in selecting the best nursing facility for you. Other people postpone the decision until later, hoping they will be healthy enough to qualify for a LTC policy at that time. Still others postpone the decision because they don't understand the options and don't want to take time to study it right now.
One notable study declares that 69% of people currently aged 65 (or 91% of couples!) will need some level of long-term care. You want to protect the assets that you have spent a lifetime accumulating, you want to retain control over your health care choices, and you don't want to be a burden to your children! UAR will help you navigate these troubled waters, but it is often critical to get started earlier rather than later!