As many of you may know Adam West died this month. I’m not aware of the circumstances of his death but if he required custodial care at the end of his life I’m sure Robin would have said, “Holy cow Batman!”
The cost of custodial care can run a yearly expense of $60,000 to $100,000 and care for cognitive impairments can even be higher. Most Americans struggle to save enough for retirement but are not prepared for a major financial setback if they need custodial care later in life. Health insurance and Medicare typically have very limited coverage for custodial care.
Genworth provides an excellent resource to calculate the average long-term care costs based on your area. This also prompts the following questions:
- How long could you afford these additional expenses?
- How would these unexpected expenses impact the estate you hope to leave behind?
- How would your lifestyle be affected while you are sick?
Long-term care insurance, which covers custodial care received at home as well as care received in a care facility, may be the right solution to protect your lifestyle and your assets. Long-term care policies can be an effective solution if planned for properly. As always seek independent advice before making any changes to your planning.
All the Best…