How much of our lives do we spend thinking about the future? When we’re kids, we think about what we’re going to be when we grow up, what our first car will be, whether or not we’ll get married or if we’ll have children of our own.
At some point, we stop thinking about the future—usually when it stops being fun to imagine. But this is when thinking about the future becomes the most important.
Common Misconceptions Regarding Long-term Care
Myth #1: Medicare will pay for it.
No. Medicare will not pay for your long-term care needs. While Medicare is designed to help those over the age of 65 keep on top of their healthcare needs, long-term care is not one of them according to the federal government. And while Medicare Supplemental plans are often touted to cover things that Medicare leaves behind, long-term care is still not one of them.
Myth #2: I won’t need long-term care.
While this may be true for some, according to the Administration for Community Living (ACL), if you were to turn 65 today, you would have almost a 70 percent chance of needing some form of long-term care service during your remaining years.
The generation currently facing the greatest growing need for long-term care services are the Baby Boomers. Born between 1946 and 1964, the Baby Boomer generation accounts for roughly 78 million Americans, and according to Medicare.gov, it is estimated that 12 million of them will require long-term care services by 2020.
Myth #3: My spouse or kids will take care of me.
According to the National Academy of Social Insurance, it is estimated that 25 to 30 percent of the baby boomer generation “will become divorced or widowed by the time they reach ages 55 to 64,” increasing the likelihood of needing to depend on one’s children to provide care.
However, studies have shown that rates of childlessness continue to rise. According to the Center for Disease Control, new data has shown that the birthrate has hit an all-time low. This statistic may not have as large of an impact on older generations who have more children than it will eventually for younger generations that do not.
Taking Control Of Your Future
According to an article from Forbes, “A private room in a nursing home now costs consumers more than $8,000 per month, or $97,455 per year… That’s an increase of 5.5 from just one year ago and a nearly 50% increase since 2004. A semi-private room is less expensive, but still carries a hefty price tag: $85,775 per year.”
Assisted living facilities are more affordable but the national average for a private room will still run approximately $45k a year — which is actually proving to be more affordable than in-home health aids ($49,192) and standard homemaker-type services ($47,934), according to the Genworth 2017 Cost of Care Study.
With the yearly cost of long-term care only continuing to rise, long-term care insurance can help both you and your family cover the cost of your care should you need it in the future.