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Long-term care insurance can help cover custodial aging costs
Median costs for a private nursing home room run about $129,575 per year, and long-term care is often needed for 3.2 years for women and 2.3 years for men, according to the article.
Long-term care insurance is designed to help pay for custodial services, such as day-to-day assistance in settings including nursing homes, in-home care, and assisted living, when a person can no longer care for themselves due to age, illness, injury, or a cognitive condition, Yahoo Finance writes. The article distinguishes long-term care coverage from health insurance, noting that Medicare generally does not cover long-term custodial expenses. It says Medicare may help only in limited cases, such as short-term skilled nursing or rehabilitation after a qualifying hospitalization. Cost and timing can be major drivers of risk to retirement savings, the article says, citing estimates that 51% of women and 39% of men age 65 and older will need some form of paid long-term care. It adds that the national median cost of a private room in a nursing home is about $129,575 per year, and that people typically need care for 3.2 years (women) or 2.3 years (men). The article also points to the potential need for coverage among adults 65 and older, referencing an American Association for Long-Term Care Insurance estimate that 43% of married adults and 51% of unmarried adults will require paid long-term care during their lifetimes. It cautions that premiums can be expensive and that not everyone necessarily needs to buy coverage, depending on retirement savings and ability to self-fund.