Here’s a birthday gift your kids can give you. And, unlike most gifts, it is a sound financial decision.
Long-term care insurance (LTC)! I’m not kidding!
Ninety percent of people never discuss long-term care with their children or even their spouse. And it is the kids whose inheritance will be drained away when – not if – but when one or both of you require either in-home or inpatient long-term care.
This gift idea really is a sound financial decision. Here’s why!
Seventy percent of us will require care at some point during retirement. And the longer we live, the greater the chance we will require assisted living or full-time in-home care.
The numbers for this care are staggering: $300 a day for a minimum-care facility for an average stay of three years; $328,000 for a basic-care facility!
For now, let’s ignore the stress this kind of money drain and care puts on the children, who are usually the caregivers.
Consider these numbers from a recent Harris Interactive survey:
- The average loss of income – 23%.
- Savings are reduced by 63%.
- 57% of families have to dip into retirement accounts.
- 45% have to cut back on family expenses.
- 29% have to take out reverse mortgages.
- 48% reported losing their jobs because of the time required to care for a parent.
- And 58% of families reported reduced college savings.
Remember, these numbers are for the children who are the caregivers to their parents.
I know the idea of giving LTC insurance as a gift from your children seemed silly a few minutes ago, but the numbers don’t lie. When you consider all the implications, it is a solid financial decision.
No one wants to be a burden to anyone, especially to the tune of over $300,000. Have a long talk with your spouse and children about LTC today.