Not quite long ago, a new research by the American association of Life Insurers (ACLI) has revealed that baby boomers require to pay attention to the very genuine option they may possibly require long-term care. The logic being the increasing long-term care costs, Long-Term Care Insurance or Medicaid. Who will reimburse for Baby Boomers Long-Term Care? Sounds the alarm on a impending national long-term care crisis. More crucial, it is a call to action for persons to include long-term care in their retirement planning.
The research shows that a one-year stay in a nursing home averages almost $ 75,000 for a exclusive room or more than $ 62,000 for a semi-private room. By the year 2030, the same stay in a semi-private room will cost an estimated $ 195,000, more than tripling over the next 25 years. Majority of Americans can not save a sufficient amount to cover these astronomical costs on their own. Americans are living longer than ever before. That is a pleasant news, but it has several risks. One of those risks is that many upcoming retirees will be facing enormous long-term care costs.
Indeed, this matter is of particular relevance to women because, generally, they tend to live longer than men. A 65 year-old woman has a 50 percent probability of wanting nursing home care in her lifetime, a cost that might potentially wipe out her retirement savings. The question now is what can be done? Life insurers suggest long-term care insurance. Long-term care insurance is a fundamental element of a sound financial strategy for retirement. It helps individuals maintain self-sufficiency in retirement if they require long-term care services.
On the other hand, long-term care policy holders do not have to depend mostly on government programs or their household to pay for care. Moreover, the product has evolved over the years. It now offers a broad range of services in a variety of settings. Some well recognized policies may include reimbursement for respite care, medical equipment, care coordination services and also home modification. Long-term care insurance provides retirement security to millions of Americans.
But the reality is that plenty of people deserve the protection it offers. With long-term care insurance as part of a retirement plan, majority of Americans are at this point better equipped to safeguard their life-long savings and maintain their standard of living. This is without doubt, a good development and a good news for everybody.