The costs of covering one's medical fees continues to rise. Expenses can be particularly high during one's later years, especially if a nursing home or assisted living services are needed. Life insurance can help cover such expenses, depending on the type of plan purchased.
A survey from a major insurance company reveals that private room nursing home rates increased 4.6 percent, equating to more than $80,000 a year.
A representative from the insurance company, Sandra Timmermann, says assisted living costs have outpaced regular healthcare fees.
"While families continue to provide the lion's share of care, paid care is commonly part of the equation and the costs can derail even the best financial plan," says Timmermann. "There is very good reason for individuals and families to look into savings plans, annuities and long-term care insurance to hedge the possibilities."
Some people may think there isn't a strong likelihood of needing assistance in retirement. However, according to the U.S. Centers for Disease Control and Prevention, there were approximately 1.5 million people being cared for in a nursing home in 2004.