A common concern for those in or nearing retirement is how does one plan for nursing home and other health related costs? However, many contend that the bigger and real issue is how does one pay for necessary services – especially on a retirees paycheck? And then, the optimist, who states that they do not want to pay for a long term care policy that they may never need. Admittedly, these are all legitimate concerns considering the cost of nursing home care in Illinois averages from $4,000 to $6,000 per month. Additionally, nursing home stays could last for a period of many years.
If you or your loved one does not qualify for Medicaid, nursing home care is typically funded through personal savings or a long term care policy. Long-term care assist people with support services such as activities of daily living like dressing, bathing, and using the bathroom. Long-term care can be provided at home, in the community, in assisted living or in nursing homes.
So, how does one plan for long term care, keep down costs and also maintain control of their funds? One way is to reposition monies that are sitting in accounts that are not in use. For example, a 62 year old woman with $50,000 in a CD or savings account could reposition those funds into an insurance policy and immediately have $102,000 of nursing home care or chronic illness benefits and maintain control of her initial premium in the event she needs it. However, she’s the optimist that I alluded to, so she’ll likely pass the $102,000 to her beneficiaries.
It is important to be proactive and explore ways to fund possible long term care expenses. By doing so, you protect the assets you’ve accumulated and those you leave your loved ones. Here’s to a long life and a merry one!