As the life expectancy continues to increase, the need for long-term custodial care has become the biggest financial risk today’s retirees face. There are ways to protect your lifestyle and the inheritance you leave your children if you act before it’s too late.In the 1930’s, just over 50% of men in our country lived to the age of 65. Today, those who reach the age of 65 can expect to live another 20 to 30 years. The shear numbers of seniors is rapidly increasing, as well. Currently, there are around 26 million Americans over the age of 65.
U.S. population.That means today’s retiree has to be prepared to not only cover normal living expenses for decades after retirement, but increased health care costs as well. The cost of long-term custodial care, when needed, will be the most expensive uninsured health expense you can incur. In fact, long-term custodial care cost would completely deplete the typical retiree’s nest egg within twelve months. This is a serious risk because there’s a 40% chance that each of us, one day, will require that sort of care before we die.
The number one misconception concerning long-term care is the belief that Medicare, Medicaid or a Medicare supplement policy will pay for custodial care. They don’t.Medicare only covers costs associated with skilled nursing care and then only after a three-day hospital stay. Skilled care refers to care requiring on-going treatment by a physician or registered nurse. The vast majority of care that seniors need is custodial care, not skilled nursing care. Custodial care covers help with bathing, eating, or getting dressed.
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