Though consumers may think they have all their bases covered when it comes to purchasing life insurance and planning for retirement, a report warns against omitting coverage for long-term care.
In a report for Delaware's Delmarva Now, financial planner Stephen Smith wrote that there are a few ways for seniors to approach this scenario - both good and bad. They could ignore the risk, try to save up money on their own, or depend on the federal government for financial help. Smith says all of those avenues could be a mistake, since essentially seniors would be underestimating the cost of long-term care.
Long-term care insurance, which can sometimes be purchased as a component to life insurance, is the smartest way to prepare for the rising cost of healthcare into seniors' later years.
"Discuss this possibility with your loved ones, make sure you have something in place, so they don't have to scramble around looking for a solution to a very expensive problem," said Smith.
Data from MetLife shows long-term care costs - which can include at-home nursing or living in an assisted living facility - could cost upwards of $80,000 a year for some families, putting extra importance on the need for adequate coverage.