If you’re looking into preparing for long-term care, you may have started considering long-term care insurance. Certainly, this can be a good way to make sure you have the funds you need as you age. However, it can be a pricey option.
Who Should Invest in Long-Term Care Insurance?
Long-term care is unpredictable, but the likelihood is that you will need it at some point in your life. Here are some important pieces of information that may help you decide if long-term care insurance is a good choice for you.
1. Many people need long-term care for under a year.
To start with, statistics show that the need for paid care varies widely among 65-year-olds who may need it in the future. However, the majority, at 48%, need long-term care for less than a year. Another 19% of people need it for under two years, while 21% need it for up to 4.99 years. Only 13% of people needed long-term care five years or longer.
2. Nursing home costs vary by state.
Depending on which state you’re in, you may find a significant difference in nursing home costs. The cheapest state is Texas, where a year in a nursing home costs an average of $54,800. The most expensive state is Connecticut, where care can cost a shocking $150,200 per year on average.
3. The cost of long-term care is lower than you may think for most people.
Most people find that they do not spend more than $50,000 on long-term care, with 63% of people saying they spent nothing. Around 13% of people over the age of 65 stated that they had costs of up to $50,000 in long-term care expenses. Only 24% of people spent more than $50,000.
Whether or not insurance is the right choice comes down the savings and protections you have in place. You may want to speak with your attorney about planning for long-term care.