Everyone carries automobile insurance, and even if it weren’t required, you would invariably take out a policy to avoid potential losses. The odds of totaling your car are far less than 50-50, but you would rather be safe than sorry.
Yet, most people who reach the age of 65 will eventually need living assistance, and a high percentage of them have made no preparations for handling these expenses.
One of the reasons why so many people are unprepared for long-term care costs is because they are under the impression that Medicare will pay for everything once they qualify at the age of 65. But Medicare doesn’t pay for an extended stay in a nursing home or assisted living community.
One option for responsible individuals who are realistic about the future is to purchase long-term care insurance. According to the American Association for Long-Term Care Insurance, people are purchasing the insurance at younger ages than they did perhaps 10 years ago.
The best course of action is to discuss your options with an elder law attorney or financial advisor before you purchase long-term care insurance. Policy terms can be complex to understand, and you have to weigh the costs versus the benefits.
In addition, although Medicare won’t pay for long-term care, Medicaid will pay for it if you can qualify. This is something to take into consideration, and your elder law attorney can explain these details to you so that you can make an informed decision as you plan ahead for the future.