According to a RICP survey (Retirement Income Certified Professional), 70% of people 65 and older will need long-term care at some point.
But of those surveyed, 82% don’t believe they’ll need it. But a critical illness can have a devastating financial impact, and these people may find themselves woefully unprepared.
Jamie Hopkins, retirement income program co-director at the American College of Financial Services, notes the difficulty of creating a good retirement plan when consumers do not understand that risks they face.
Many people may erroneously assume that Medicate or Medicaid will be there for any problems that arise, but this is not necessarily the case. Medicare is not intended to cover long-term care, and Medicaid requires that an individual must exhaust their own assets before they become eligible. With a long-term care policy, assets are protected. Furthermore, Medicaid covers only the minimum and may not provide the same type of home or institutional care that an insurance policy would.
The best time to buy a long-term care policy is when you don’t need it –when you are young and in good health. That means get it while you’re in your 40s or 50s, as by the time people reach 60, there may be significant underwriting issues.
For more information, please read:
Long-term care: Beware of what Medicare, Medicaid does not cover | Fox Business