Long-Term Care Costs More Than You Think It Does

When clients meet with estate planning lawyers for the first time, some of them have more realistic expectations about their retirement finances than others. If your only income during retirement will be from Social Security, then don’t expect to keep your empty nest in your possession while spending most of the year in a lakefront cottage where you can see wading birds from your window. No matter your financial situation, it is also a mistake to assume that, for the rest of your life, you will remain healthy enough to live independently. Long-term care is one of the least pleasant aspects of estate planning to think about. Especially if you value your independence, it is scary to think about your only options being your daughter helping you take a bath or a paid caregiver helping you take a bath. Even if you are honest with yourself about the fact that you will probably eventually need long-term care, you are probably underestimating how much it will cost. For help understanding the costs of long-term care and planning for them in ways that prevent financial ruin, contact a Tampa estate planning lawyer.

Why Is Long-Term Care So Unaffordable?

On the CNBC Personal Finance website, Greg Iacurci explains how the costs of long-term care can be burdensome to retirees, and why so many people are unprepared to cope with long-term care expenses. In general, healthcare gets less expensive when you turn 65 and enroll in Medicare; your insurance premiums are lower because they only cover outpatient treatments, and the most commonly prescribed drugs cost little or nothing.

When it comes to some of the services that seniors need the most, though, Medicare is downright stingy. For example, it categorizes nursing care as skilled care or custodial care. The skilled category involves things like administering medication by injection or IV. Medicare pays for up to 100 days of skilled nursing care, whether in a residential facility or by a home health aide. It does not pay anything toward custodial care, which is where the nurses help with the activities of daily living, such as preparing food and bathing.

In this context, it is understandable why Medicaid is the biggest source of payment for long-term care for seniors. Some Medicaid nursing home residents had been low income employees who always qualified for Medicaid, while others ran out of savings due to the high cost of long-term care and enrolled in Medicaid once they had no other way to pay.

Your Best Options for Preventing Long-Term Care Expenses From Consuming Your Entire Estate

Your best protection against financial ruin due to long-term care is to buy long-term care insurance. Hybrid policies, which combine life insurance benefits with long-term care benefits, are the most affordable option.

Contact David Toback About Your Retirement Healthcare Expenses

A Central Florida estate planning lawyer can help you plan realistically for the costs of long-term care.  Contact David Toback in Tampa, Florida to set up a consultation.

Source:

cnbc.com/2025/05/17/why-long-term-care-costs-can-be-a-huge-problem.html