Why you should buy long-term care insurance for your parents
Are your parents retired or nearing the end of their career? Have you thought about what's going to happen when they can't take care of themselves anymore? According to the Administration for Community Living, there's a 70% chance that they'll need long-term care services at some point in their remaining years once they reach age 65.
But will your parents be able to afford it?
The good news is that long-term care insurance can help bridge the gap. This type of insurance can cover the cost of in-home care or an assisted living facility when your parents need it. Moreover, you can purchase a low-cost plan for them, leaving both you and your parents reaping the benefits.
Find out how affordable it can be to buy long-term care insurance for your parents now.
Why you should buy long-term care insurance for your parents
There's a strong chance that your parents will need long-term care at some point in their lives. "Today, with medical technology, we have the ability to potentially live longer than our ancestors," explains Cynthia Pruemm, investment advisor, founder and CEO of SIS Financial Group in Hoffman Estates, Illinois. Of course, living to older ages equates to a larger need for care.
But that care can be expensive. "The biggest hit to your retirement portfolio is not the stock market or buying a house. It is a long-term care event," Pruemm says. When you purchase a long-term care policy for your parents, their retirement nest egg can last longer, but that's not the only reason to buy a policy. Here are some others to consider:
To make sure your parents receive the care, privacy and dignity they deserve
With an average cost of "$5,000 plus a month," Pruemm notes, many simply can't afford long-term care. When asked about insurance for these events, she explains that it can give your parents "things like peace of mind and freedom of choice." Moreover, she says, long-term care insurance can allow your parents to hold onto their "privacy and dignity."
The simple fact is that without a long-term care policy, your parents may not be able to afford the round-the-clock care they need. If they can, they may be forced to settle for a facility they don't want to be in, or to share a room with others to cut costs.
Secure care for your parents with a long-term care insurance policy now.
To protect your pocket & inheritance
If your parents don't have plans for long-term care, and need it in the future, one of three things will likely take place:
- Your parents pay for care: Your parents pay for the care they need out of their pockets. In doing so, the cost of care will cut into the value of their estate. If they need care for too long, costs could eliminate their estate entirely - leaving nothing left to inherit.
- You pay for care: You may decide to pay for your parents' care. If so, the cost of care could lead to financial instability in your home. As Cynthia explains above, long-term care costs are often upward of $5,000 per month. An expense like this can quickly drain your savings and investment accounts.
- You provide care on your own: You could decide to take care of your parents on your own to save money. But this isn't necessarily a free option. Taking care of your parents means you'll need to get them to doctor's appointments, therapy and more. So, you'll likely need to miss days of work. Moreover, you may need to make costly changes to your home to make it a safe living space for your parents.
To protect your health and your memories of your parents
As the cost of long-term care continues to rise, more people are taking care of their parents on their own. That may not be a healthy choice. Not just for your parents, but for you too.
"I have seen this more often these days, my clients become the caretaker of their spouses or parents. You know what happens to the caretaker?" Pruemm asks. She went on to explain that "the caretaker becomes ill themselves, becomes frustrated and grows animosity." She went on to say, "this is not how you want to remember your loved one."
Buy a long-term care insurance policy for your parents today and lock in the lowest rate possible.
The bottom line
There's no telling whether or not your parents will be part of the 70% of people who need long-term care at and beyond age 65. However, if they do, and they're not prepared, the cost can be detrimental. You can bridge the gap. Purchase a low-cost long-term care insurance policy for your parents to avoid future financial strain on them and yourself.
