There is a strong chance, according to a 2005 study, that you will need some assistance with everyday tasks like bathing, dressing or eating and other activities of daily living. That study determined that 69% of individuals aged 65 and beyond would need long term care at some point in their lives. Unfortunately, however, paying for long term care can be extremely expensive.
The cost of a nursing home room or an in-home health aide can be catastrophic for an individual who was counting on those funds for a typical retirement. Many people make the mistake of assuming that Medicare and Medicaid will cover all of their long-term care expenses.
Medicare will not cover the majority of long term care expenses as these are not classified as medical treatments. The first 100 days of nursing home care may be covered by Medicare, but this is not a long-term plan as a more serious issue or cognitive decline could require a longer stay. The Medicaid program is geared primarily for low income individuals. Retirees with a lot of assets or high levels of income, most likely won’t qualify for Medicaid without advanced planning strategies, but long term care insurance could assist.
Getting a better rate is possible while you are younger and healthier so it is strongly recommended that you consider the benefits now. Having legal documents in place that enable another individual to make medical decisions or end of life care decisions on your behalf is strongly recommended. No one anticipates becoming suddenly incapacitated, but having a plan in place and empowering someone else to make these decisions for you can give you a great deal of peace of mind.
