The Long-Term-Care Insurance Dilemma
One of the most effective ways to protect your retirement savings from the high price of assisted living, in-home care or a stay in a nursing home is a long-term-care insurance policy. But recent premium hikes have many baby boomers worried that coverage is no longer affordable.
The median cost of one year in a private room in a nursing home. A year of assisted living was $45,000, and 44 hours per week of home care-which most people prefer-came to $49,000. Care costs have been going up by 3% to 4% per year over the past five years.
