BEST FINANCIAL ADVISORS OF U.S.

Ask most 50-plus men and women about retirement, and they’ll admit that they have not saved as much money as they’d like. Mention long-term care and they may confess that they’re not ready to think about it — yet.

Thinking about issues such as failing health isn’t as much fun as considering retirement travel plans. Unfortunately, the possibility of needing long-term care is as real as the fun aspects of being a senior. In fact, people who are now 65 face at least a 70-percent chance of needing long-term care during their lifetime, according to the 2006 Guide to Long-Term Care Insurance published by the America’s Health Insurance Plans association.
That care can be expensive. Nationally, the average cost of a year in a nursing home is $60,000, and just three weekly visits by a home health aide can add up to $18,000 a year, with skilled help being much more expensive. In 2008, North Florida’s average annual cost of a nursing home was $78,000, and three weekly visits by a home health aide topped $20,000 per year. (Based on local research and information provided by The National Clearinghouse for Long-Term Care Information.)
Between the probability of requiring care and the potential cost of that support, planning for long-term care is an important factor in retirement planning. Many people mistakenly believe that the government provides the answer. However, the disclaimer “Medicare does not pay for long-term care, so you may want to consider options for private insurance” is now printed on all Social Security Administration benefits statements.
Furthermore, Medicaid pays benefits only for people meeting federal poverty guidelines. Relying on Medicaid to fund long-term care is not an attractive option for most people who wish to maintain control of their own assets.
Long-term care insurance is an increasingly popular strategy. According to a 2009 report by the Life Insurance Marketing and Research Association, there were 4.8 million long-term care insurance policies in force at the end of 2008. As the United States population ages, this trend is expected to strengthen.

Karen Cooley, co-owner of Chez Pierre restaurant, has recently started a new career with North Florida Financial Corp. and has become passionate about sharing a holistic approach to financial planning. Contact her at karen_cooley@glic.com.

Tags: Best financial advisor, financial planner, long term care insurance

This entry was posted on Wednesday, November 18th, 2009 at 4:36 pm and is filed under Finding The Best Financial Advisor. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.