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Finding a Solution: The True Cost of Aging in America

Finding a Solution: The True Cost of Aging in America

People are living longer than ever before. At first, that sounds like a good thing. Who doesn’t want more years to spend with their loved ones? Unfortunately, many people are paying the price for their long lives. Long-term care, particularly in assisted living facilities and nursing homes, can quickly become expensive. Nationwide, it costs an average of $43,200 a year to live in an assisted living facility. Move to a nursing home and that cost skyrockets to over $80,000 for a semi-private room or $90,000 for a private room. In some areas of the country, it’s even higher. In California, for example, the cost of a private room in a nursing home averages around $100,000 a year.These costs simply aren’t affordable for many aging adults, especially for those who never planned to outlive their retirement income so substantially. While advances in medicine have made it possible for aging adults to live high-quality lives longer than ever before, unfortunately, in many cases, their retirement savings are depleted long before that point. The solution? “Aging in place,” which allows adults to stay in their own homes for longer. Here are some of the options to make this a more viable solution.

Home Care Services

Home care services, which may be paid for by Medicaid, allow elderly individuals to get the care that they need in their own homes. They can receive basic medical care services, help with personal care, and even get transportation to and from medical appointments. In some cases, home care services will also include meal preparation or provision. The median cost of six hours of care from a home health aide is around $30,000 per year — much less expensive than an assisted living or nursing home facility. In addition, some individuals need less assistance than others, which reduces these expenses. It is for this reason that Medicaid has programs in place that provide home care for many individuals who do not require institutional care.

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Adult Day Care

Adult day care is more than just a place where your elderly loved one will be looked after in a secure setting. It’s also an opportunity for them to socialize, participate in activities, and have their basic medical needs seen to. The median cost of adult day care is $17,904 per year. If no other home care services are necessary, adult day care can significantly improve an aging individual’s ability to keep their retirement savings in place for much longer than if they had been in a nursing home or assisted living facility.

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Home Modification

When your elderly loved one purchased their home, they likely weren’t considering their needs as they aged. Things like wheelchair ramps, widened doorways, and accessibility options for showers and bathtubs can drastically improve your loved one’s ability to remain in their own home. While Medicaid and Medicare may do not cover physical modifications to the home, some states offer special pilot programs that can help with home modifications. If your state does not cover these modifications, they are acceptable expenditures in terms of using your loved one’s existing assets and can be used to lower that asset amount to meet Medicaid thresholds. The Medicaid “spend down” can be quite complex for the uninitiated, and it is therefore recommended that you reach out to a long-term care Medicaid eligibility expert or educate yourself fully and learn as much as you can about the process.

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Looking Forward

While the current health care model is working, it’s evident that the state cannot support the needs of an aging population indefinitely. Many revisions are needed to the system in order to ensure high-quality care for aging individuals in America. It’s going to take personal planning as well as public planning to avoid a crisis. Going forward, retirement age may shift to reflect the change in life expectancy. Improving the health of older adults to allow them to remain active and productive members of society longer will also contribute to the solution — but it’s not a perfect fix. In addition to steps taken by the population as a whole, personal planning is necessary in order to ensure that aging adults will be able to provide for their own needs for the duration of their lives.

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Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

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  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

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  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

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Featured photo credit: aryehsampson.com via aryehsampson.com

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