What You Should Know About Long Term Care
Questions
- who should apply for LTC?
- anyone who does not want to spend down assets if they need care
- anyone who has limited assets now
- what are the decisions/considerations they need to make before buying?
- Health
- Family history
- Cost
- Product type
- Income needs at retirement vs. want to have income
Facts
- Not everyone can qualify
- Underperforming markets can complicate assets needed for retirement income that would cover long term care. The cost of long term care is increasing
- Health care costs when you retire (premiums and additional costs)
- In 2017 the client decides to retire at age 65
- Premium for health care is $4,044
- Additional health care costs $1,906
- Total needed annually in year one is $5,950
- By age 75 total annual costs would be $12,268
- 7 out of 10 people over age 65 will need long term care at some point in their lives
- Medicare does not cover long term care needs and Medicaid is a welfare program
