Many families may find their retirement savings account to be healthy enough to support their lifestyle after work, but if an incident requires them to tap into that account as a source of emergency income, they could soon find their retirement savings depleted.
That's why retirement expert Jonas Roeser suggests consumers consider insurance that would cover their medical or health-related expenses in the event that they need long-term care. If a family member requires the costly care, it could be tough for workers to resist tapping into their 401(k) to pay for expensive health treatments and daily care. Long-term care insurance - which consumers can sometimes find as a supplement to life insurance - may provide them with the security they need to keep their retirement account healthy.
"If you don't have long-term care insurance, you're in effect self-insuring, and your retirement money will most likely take the hit," said Roeser.
The scenario could become especially costly if a family needs to finance a loved one's stay at a long-term care facility. A report from MetLife showed monthly costs for an assisted living center totaled $3,293 in 2010.