Paying for long term care
You have worked hard and provided for yourself and your family, probably by bootstrapping your way through challenge after challenge. If you’re like most of our clients, you weren’t raised with a silver spoon and you weren’t handed a trust fund that supported you; you had to make your own life, your own money, and your own mistakes. And, again like the rest of our clients, you’re proud of the life you were able to create for yourself and your family. Things maybe didn’t always go perfectly to plan, but you knew how to figure things out and make it work.
Some things are hard to prepare for. Our death and disability certainly fall into the things we want to avoid talking about. We understand that at Keystone. It’s hard to face these topics. This is one reason we’ve created this website, so you can get informed from the comfort of your own home.
Needing to go into a nursing home or assisted living facility is scary. It’s hard to know who will give you the best care at a reasonable price. Since these places aren’t covered by Medicare or regular health insurance, paying out of pocket means you want to be an EXTRA informed consumer. The average cost in the Phoenix area (in 2017) for a private room is $8,319!! At that cost and with the average length of stay, it could drain $299,484 from your next egg, or double that for a married couple.
It’s time to start figuring out how to pay for it without going broke, right?
Let’s look at the three main ways to pay for long-term care:
Self-pay. If you’ve saved up enough money to pay for the care you need in your twilight years, that’s great. However, with annual cost of nursing home care hovering around $100,000 or more, you’ll need to save a lot and your savings still may be quickly depleted. Make sure you have saved enough so that your surviving spouse won’t end up broke and moving into your children’s basement (if that’s not your goal).
Long-term care insurance. Check into this insurance early. Like all insurance, you have to apply and be accepted. In recent years, some companies have gone back on their promises and we’ve seen some policy premiums get so expensive that it’s not worth keeping the policy in force. Look for a policy that has fixed premiums and gives your beneficiaries some money back if you don’t use it. We can help you find that type of policy.
Public benefits, like Medicaid or Veteran’s Benefits. Planning for these benefits also starts early, sometimes years before you’ll apply for them. We can help you figure out if you are eligible or, with some pre-planning, if you could become eligible when you need it.