Most Florida retirees have a big concern on their minds and it has to do with the cost of health care. According to Fidelity Investments, the average American who retires this year will spend approximately $230,000 on health care during his or her retirement years. Frighteningly, though, this figure does not incorporate the costs of long term care. This is why many Americans may wish to think about long term care insurance to help them cover those costs.
On average, one room at a nursing home will cost about $88,000 per year. Most people live at a nursing home for about four years before they pass away. In comparison, a part-time assistant providing home health care will be a lot cheaper. However, when it comes to long term care planning, one must prepare for the worst.
Long term health care insurance may be the answer for individuals looking to protect their assets, so that something will be left for their heirs following health care expenses in their final years. Also, the earlier one buys this type of insurance, the cheaper it is.
As a general rule, advisors recommend that Florida residents who have a net worth of $250,000 to $2 million are the best candidates for long term care insurance. These individuals will have enough assets or income to pay for the cost of the insurance premiums, and they will have enough assets to warrant protection from health care costs.
Aside from buying health insurance, long term care planning may also include setting up a trust and having specialized wills and other estate documents. Fortunately, a qualified estate planning attorney will be able to assist Florida residents in preparing such arrangements well in advance of needing them.
Source: The Wall Street Journal, “4 reasons you need long term care insurance” Stephen Williams, Jul. 22, 2014