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 plan in place for long-term care.
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.