Long-term care insurance will cover the cost of long-term care from a disability due to age, illness, or injury. This type of insurance can cover many types of care ranging from in-home aid, to assisted living, and skilled nursing facilities.
Today, the average cost of living in a skilled nursing facility is over $100,000 per year with assisted living and adult home facilities not far behind. It is an inevitable reality that one of these options may, at some point, be the best and only choice for our loved ones or ourselves. Therefore, planning to afford this expense is an absolute necessity. With the rising costs of long-term care options, long-term care insurance can help to lighten the financial burden by paying for room, board, and skilled care by doctors and nurses.
Just like any other type of insurance, long-term care policies can only be purchased before the benefits are needed, while the individual is still healthy. As we have discussed before, people have a tendency to put off planning until it is too late. If you procrastinate in considering long-term care insurance, it may not be an option later when you really need it.
When estate planning, you and your attorney should work closely with a long-term care insurance advisor who can design coverage plans that will fit your specific situation. As is the case for all aspects of estate planning, preparing and considering options early will let you avoid crisis later.