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One of the most difficult parts of aging is seeing the person you’ve spent your life with reach the point where they need long-term care. It may become more difficult if there is a financial burden to bear in addition to an emotional burden. Long-term care can be expensive relative to the national average Cost of nursing home North of $100,000 a year, depending on where you live and what type of service you want.
Fortunately, there is a way to mitigate some of the costs associated with aging: Long-term care insurance. If you’re in a long-term partnership, you can also share benefits with your partner, often referred to as “shared care.”
Shop for a long-term care insurance policy now.
How joint long-term care insurance works for married couples
Long-term care insurance can be the difference when it comes to getting the quality care you need in old age.
“Long-term care insurance is a way to have more control over your future while helping protect your loved ones from the impact of a potential long-term care event,” says Jeff Pelegotti, vice president and head of Long-Term Care Solutions at Long-Term Care Insurance. New York Life. “This type of policy gives you choices about what type of care you can get, including whether you will receive care at home or in a facility.”
If you are married (or in a domestic partnership), it may make sense to link your long-term care policies. Here’s what you need to know.
Joint care basics
Long-term care insurance works like any other insurance policy – you Pay installments in advance In exchange for subsequent benefits. In the case of long-term care insurance, benefits consist of: Money to pay for services Including home care, home care, occupational therapy and even Care of the elderly.
Shared care is often provided in the form of Ryder For long-term care policy. Riders are essentially add-ons that enhance the benefits you get from your policy. Some other famous riders include A Benefit of hybrid life insuranceInflation protection and survival benefits. This ridership will add cost to your premium, so be sure to shop around before committing to one provider.
To use a shared sponsorship rider, you and your partner must first have a policy. You can buy them together, but technically each of you will have your own. A co-sponsorship rider links them and allows one partner to use any unused benefits from the other. Let’s say, for example, that you and your partner have a monthly benefit of $2,500 and a maximum lifetime benefit of $100,000. If your partner dies before using all their benefits, unused benefits will be transferred to you at no additional cost. If your partner used $25,000 in benefits and you used none at the time of his or her death, you will now have $175,000 in benefits to work with when you need them.
Start by looking for a long-term care insurance policy so you can feel more secure.
Who should use shared care?
Any couple or group of long-term domestic partners can benefit from using a shared sponsorship rider. The simple fact is that for a small monthly cost, you can make the most of the benefits you’ve already paid for in the event one of you dies early or unexpectedly without using up all the money you have available. If one partner thinks they may need extra care in old age, shared care may be more beneficial, giving them more money to pay for care once they no longer have another partner to rely on.
How much long-term care insurance should you buy?
Question for How much coverage to buy? It is personal, driven by your financial and medical situations. Getting help from a professional is often a good way to figure out your needs.
“A good first step is to have a conversation with a trusted financial professional who can help you calculate retirement assets, potential health care expenses in retirement, and whether a stand-alone long-term care policy or an associated benefits policy might make sense for you,” he says. Beligotti.
After knowing your retirement assets and how much you expect to spend on health care, another thing to consider is where you plan to live after retirement — some states have their own programs to help with these costs. By taking these elements into consideration, you will be better able to narrow down the correct amount of long-term care insurance to purchase.
Bottom line
Long-term care insurance helps make sure you can pay for the services you need as you age. If you have a partner, you can link your policy to theirs so that if one of you dies, the other inherits your unused benefits. Not only does this make life easier for the surviving partner, but it also ensures that you have the best chance of using the benefits you paid for.