Long-Term Care: When Self-Insurance is Too Risky
The Hidden Cost of Aging
As we plan for retirement, we often focus on building savings, managing investments, and securing our homes and families. But one critical area frequently overlooked is the potential need for long-term care. Whether due to aging, illness, or injury, needing assistance with daily activities is a reality for many—and the costs can be staggering.
Why Long-Term Care Planning Matters
Long-term care includes services like home health aides, assisted living, and nursing home stays. These are not covered by traditional health insurance or Medicare, except in limited circumstances. The average cost of a private room in a nursing home is now over $100,000 per year, and even home health care can cost thousands each month.
The Risk of Self-Insurance
Many people assume they can self-insure by relying on savings or home equity to cover these expenses. While this might work for some, it’s a gamble that could jeopardize your financial security and your family’s future. Market downturns, unexpected health crises, or simply living longer than expected can quickly deplete even substantial savings.
Protecting Your Legacy
Without a plan, the need for long-term care can force families to make difficult choices—selling assets, drawing down retirement accounts, or relying on loved ones for financial support. Long-term care insurance helps preserve your wealth and ensures your hard-earned assets are passed on to your heirs, not spent entirely on care.
Common Misconceptions
“I’ll never need it.” The reality is that about 70% of people over 65 will require some form of long-term care in their lifetime.
“My family will take care of me.” While family support is invaluable, not all care needs can be met at home, and relying solely on loved ones can place an emotional and financial burden on them.
“It’s too expensive.” Premiums can be significant, but the cost of not having coverage can be far greater—potentially wiping out your savings in a matter of years.
Let’s Start the Conversation
At Stahlnecker Group Wealth Management, we help you evaluate your options for long-term care, including insurance policies, hybrid life/long-term care products, and strategies for leveraging home equity if appropriate. Our goal is to protect your financial future and give you peace of mind, knowing you’re prepared for whatever lies ahead.
Concerned about the risks of self-insuring for long-term care? Let's start the conversation about create a Long-Term Care strategy that protects you and your loved ones.
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