Long-term Care-Will you need it?

By Dave Verbeke

Yes. According to the Department of Human Services, 70% of people turning 65 can expect to use some type of long term care (LTC) service during the remaining years of their life. Care could include home care services, home health aide, respite care after a hospital visit, assisted living or memory care. Transitional or progressive senior housing has become the popular choice for care. LTC insurance can be designed to include these types of service to help ease the burden from caregivers.

Transitional senior housing services can progress from $3,000 to over $10,000 per month depending on the level of care provided. The question becomes how to bridge the gap between monthly income from Social Security, pension and other sources and expected costs. LTC insurance is one of the options to help bridge the gap between what you can self-insure from your assets and provide a backup plan to reduce the drain on the money you have left.

LTC insurance has become more costly because people are living longer. The days of unlimited benefit polices are long gone because they aren't affordable. This has caused consumers to abandon LTC insurance completely. What now has become popular and cost effective is to limit the pay out of the policy to a time frame such as 3 years. Average stay for a male is 2 years and 4 years for a female. Insuring for part of the expected cost is a better way to limit your chance of running out of money and providing for the care you need. Ask your advisor if LTC insurance is an option for you.

2020 by WEBB FINANCIAL GROUP. Proudly Created at WIX.com


Webb Financial Group (WFG) is a registered investment adviser firm offering advisory services in the State of Minnesota and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by WFG in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption.

All written content on this site is for information purposes only. Opinions expressed herein are solely those of WFG, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties' informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.

WFG is licensed to sell insurance in the State of Minnesota and may be licensed in others.