High Nursing Home Costs Illustrate Importance of Planning Ahead

8/29/2010

Long term care insurance may not be the only part of a successful retirement plan, but it's an increasingly critical one in an age of skyrocketing nursing home costs.

Even before they begin to approach their retirement years, it's wise for people to be aware of the fact that Medicare will not cover all of their healthcare expenses if they become incapacitated or need to move to a nursing home - which can cost thousands of dollars per month. These areas are where long term care insurance comes in.

In a recent column in the Huntington Herald-Dispatch newspaper, Deborah Miller, director of planned giving for the West Virginia University Foundation explains that people in nursing homes stay there for an average of two years - and that 40 percent of people over the age of 65 will end up needing either those services or a home health aide.

She added that these expenses may prevent people from being able to leave inheritances to loved ones, while also advising that discounted policies may be available for married couples.

Overall, financial experts often emphasize the importance of saving for retirement, but most savings will quickly be depleted in the event of a major health setback.