My father is 68, relatively healthy and living alone. He has very little savings and works full-time. He can't afford to buy long-term-care insurance. If something happens to him, it's likely that my family and I will have to help pay for his care. Should I buy long-term-care insurance for him?
Buying the insurance is a smart move: The average cost of a private room in a nursing home tops $90,000 a year, and care in your home can be even more — making it highly unlikely your father could handle the expenses on his own. If he has very little income or savings (see Medicaid.gov for details), he may qualify for Medicaid, but his care options would be limited. Most states cover custodial care (the care needed by Alzheimer's patients and others with long-term-care needs) only in certain Medicaid-eligible nursing homes, although a few have special programs that cover care at home. For more information about Medicaid coverage for custodial care, see Does Insurance Cover Alzheimer's Care?
Long-term-care insurance can help pay for many more care options than Medicaid, including care at home, in an assisted-living facility or in a wider variety of nursing homes. You can cover your father's premiums, but he'll need to sign the application and health care releases himself. The cost will depend on your dad's health and the terms of the policy. A Genworth policy for a relatively healthy 68-year-old man, including a $3,500 monthly benefit, a three-year benefit period, 3% compound inflation protection and a 90-day waiting period, would cost about $3,200 per year, says Mike Ashley, of Senior Benefits Consultants in Prairie Village, Kan. A policy with the same terms that pays $4,000 a month runs about $3,700 a year.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
If you are interested in getting long-term-care coverage for your father, don't wait too long. Long-term care insurers are making it more difficult to qualify for coverage, and Ashley says that most people who are interested in buying a policy for their parents wait until their health is too bad to qualify for coverage.
For more information about long-term care insurance, see Navigate a Course for Long-Term Care and A New Strategy for Paying for Long-Term Care and our Long-Term Care Special Report. For information about coverage options from families who are helping relatives with their long-term care needs, see Planning for Alzheimer's and Alzheimer's: Get Your Finances in Order.
-
Trump’s Tax Cut Risks Your SNAP, Medicaid BenefitsTax Cuts The GOP budget blueprint could slash lifesaving programs for millions of U.S. households.
-
Medicaid Managed Care Groups Under Congressional InvestigationLawmakers question Medicaid MCOs over their high rates of prior authorization denials.
-
Hospitals Say Increased Medicare Reimbursement Is Not Enough: Kiplinger Economic ForecastsEconomic Forecasts Medicare will bump up hospital reimbursements by 3.1% in 2024, but the industry says it's not enough as it comes off its worst financial year of the pandemic.
-
More Weight-Loss Drugs, Like Ozempic, are in the Works: Kiplinger Economic ForecastsEconomic Forecasts Pharmaceutical companies are developing more weight-loss drugs similar to Ozempic, but these injectables are still expensive.
-
Amazon launches RxPass — its new subscription service for medicationAmazon's new program, RxPass, lets Prime members ship prescription medications to their homes for just $5 a month.
-
Considering a Medicare Advantage Plan? Be Wary of PromisesThese private insurance alternatives to Medicare are growing in popularity at the same time they’re under scrutiny for their sales tactics and coverage.
-
Medicare Costs to Go Down in 2023Retirement Lower-than-expected spending on an expensive drug and other things means beneficiaries will pay less next year.
-
Inflation Reduction Act Boosts Obamacare Tax CreditTax Breaks Enhancements to the premium tax credit are extended for three more years under the Inflation Reduction Act.
