I would like to share with you the story of two friends of mine, who are in distress because their parents require long term care.
George and Joanne are a married couple in their late 40s. George just put his parents in a nursing home, which costs $2,000 per person every month. At the same time, Joanne’s mum is living with them while receiving in-home medical and nursing care. Such home care services costs $1,100 every month.
All 3 parents are either suffering from dementia or stroke, which hampers daily activities like eating and bathing. In particular, George’s mum has lost control of her bladder due to dementia.
They feel stressed and emotionally drained. Both sets of parents have lost their savings and independence, because they lack long term care insurance.
After struggling with long term care for their parents, George and Joanne want to protect their kids from the financial and emotional burden of having to care for them in their old days. They realised they need a long term care insurance policy.
As George was sharing with me, he felt that if his and Joanne’s parents had a long term care policy, instead of creating this emotional and financial burden for the family, the policy would have paid for the care and help them maintain their independence.
The greatest risk we will face in retirement is requiring long term care. Without long term care insurance, we are playing the wrong odds. What is really worrying George and Joanne is this fast approaching dark cloud of a $100,000 per person risk, for an average 5 years stay. How are they going to pay this amount when they still have to save for their retirement?
If you are 40 years old or older, long term care insurance builds a shield around your nest egg, protecting you and your family from that risk so you can enjoy spending quality time with each other in retirement. Your kids will be grateful they don’t have to worry about changing your diapers or giving you that uncomfortable sponge-bath, because you planned ahead.
If you have parents age 40 or above, long term care insurance will pay for the care of your parents at old age and help them maintain their independence. Most importantly, you don’t have to pay for long term care expenses such as Nursing Home fees and hiring a caregiver on your own.