Long-Term Care Insurance – A Glimpse Into The Future
As you consider long-term care insurance, you may wonder if it's feasible to “self-fund” your future care. You're probably hopeful that you've saved enough to cover the cost any future scenario – from needing a home healthcare provider to requiring comprehensive Alzheimer’s care.
While it’s commendable that you have have prepared for the future, there’s a good chance that you may be calculating future long-term care costs using today’s dollars.
For example, if a 55-year-old person lives in Illinois, the median monthly cost of a private room in a nursing home is $5,870. It sounds like a lot, but in reality this amount is cheap compared to how much it will cost in 25 years, when he or she is 80 and actually needs care. In fact, in 25 years, that same room will cost $19,878 per month.
If you are planning to self-fund your long-term care, it's important to know these numbers up front. For many people, the difference between $5,870 and $19,878 makes long-term care insurance more appealling.
To help you prepare for the future, we’ve included links to two carriers’ Cost of Care Studies below.