The societal trend is for succeeding generations to take care of their parents. The economic burden generally falls on them. In our present culture, baby boomers have taken care of their parents with some purchasing an LTCi policy to indemnify or at least mitigate the cost of extended care to protect their own finances. It is a reasonable planning tactic to cover geriatric parents as part of your overall retirement strategy which may include parental care.
The national average for a nursing home is currently $7,500 per month. That number can be higher in some parts of the country. That can total $270,000 for 3 years of care. With the cost of care continuing to rise people need to ask themselves if they don't have a Long Term Care plan then what assets are they prepared to liquidate to pay for the care? Your parents assets or your assets can go quickly without a Long Term Care plan.
A good Long Term Care plan will have coverage for assisted living, home healthcare and a nursing home.
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A good Long Term Care plan will have coverage for assisted living, home healthcare and a nursing home.