Approaching the latter part of one’s life is not a particularly pleasant thing to consider, but it is important to determine certain aspects in advance. This can include how assets will be left to beneficiaries under a will, or how one wants his or her end of life medical care managed with durable powers of attorney. One point many people here in Colorado and around the country fail to think of is how to pay for long-term care. Allocating certain finances to cover the cost of a nursing home or other facility is an essential part of life care planning.
As good as the care is in many nursing homes and long-term care facilities, it can be very expensive. One study says that the median cost per month in 2018 for a semi-private room is nearly $7,500, and a private room can cost over $8,600. Experts say that the best thing a person can do is make plans ahead of time for how to pay for this type of care if it is needed. Some people assume that their regular health insurance or Medicare can cover the cost, but they do not cover long-term care. One option is that families may purchase long-term care insurance policy if they qualify, which can offset the expense of a nursing home.
Experts say that even if a person cannot purchase a policy that would cover the complete cost of a long-term care facility, it may be better to purchase whatever coverage a person can afford. Some life insurance companies can bundle in a long-term care policy that would pay more to a beneficiary if that portion of coverage was never used. Alternatively, families can consider saving for long-term care on their own or use Medicaid, if they can qualify.
Whatever a family decides is right for their life care planning needs, the importance of having a complete estate plan cannot be over emphasized. Those in Colorado with questions about their options may wish to reach out to an experienced estate planning attorney. Doing so can offer peace of mind that one’s family and loved ones will be cared for after the end of life.