The average couple retiring in 2014 can expect to pay $220,000 to $240,000 in health-care costs during the course of their retirements, according to a new estimate from Fidelity Investments. As if this weren’t scary enough, lost in the fine print is the fact that this figure doesn’t include long-term care.
Long-term care costs can vary widely by type of care and location. A single room at a nursing home facility will cost on average close to $88,000 a year, with a typical stay of approximately four years. Part-time in-home care by a home health care practitioner will cost considerably less. Regardless, everyone should have a long-term care plan in place. Are there ways to prepare for these variable and unpredictable costs?
The good news is that there is long-term care insurance (LTCI), and like any insurance, it’s cheapest to buy when the insured event is more likely further in the future. In other words, buy early.