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The longer you live, the higher the probability of needing long-term care. Long-term-care deplete resources, including well-established retirement plans. A survey conducted by Glenworth in 2020 shows that the monthly cost of a private room for long-term care is around $ 8,800. Many people think Medicare will cover their long-term care. However, it only pays for medically necessary nursing services for 90 days. Medicare cannot cover custodial care for dementia or other related conditions.

You can opt for long-term care policies because they cater for transportation, doctor’s appointments and other long-term care services. However, they require high premiums because of the increased cost of care and low-interest rates. You may never require long-term care. Hence it is crucial to determine if you need insurance cover.

You can self-insure if it is the best option for your family and you have enough funds. Family caregivers are forced to reduce their working hours or quit jobs to take care of a family member who needs long-term care but cannot afford it. Self-insurance means you will pay the long-term care services out of your pocket.

If you decide to buy insurance, you can buy a cover for both if you are a couple to avoid exhausting your combined savings if one of you or both require long-term care. However, if getting two policies is costly, you can purchase a plan with shared benefits. In such a case, a spouse who has exhausted their benefit can tap from their spouse’s share.

Another way of cutting insurance costs is eliminating inflation riders. Similarly, the premium cost can be reduced by buying a policy in the early fifties or Forties. Insurance companies assume the age brackets have a lower risk of health problems. A hybrid policy that includes long-term care benefits also reduces costs. If the policy pays for long-term care expenses, the death benefit decreases. 

In conclusion, every individual should think about their long-term care costs. It is essential to understand that Medicaid cannot cater for your long-term care expenses in conditions such as dementia. Medicaid is unreliable because of its “look-back” period whereby your financial transactions are examined for the last five years to decide whether the money contributed qualifies you for Medicaid. Eligibility is not a guarantee, and even if one qualifies, they must go to an institution that accepts Medicaid.