Many Americans know they, their spouse, and even their parents may need long-term care at some time during their lives. And, they know the cost of this care won’t be cheap. The average annual cost for a nursing home is roughly $70,000 private and $62,000 semi-private* - double that cost in some areas. The U.S. Health Cooperative estimates the average nursing home costs will double in the next decade.

Most people rely on one of two ways to pay healthcare bills: out of their own pockets or using the government’s money. Only a small percentage rely on what most experts agree is the best way to pay for long-term care: private insurance.

Here are several reasons why you should strongly consider buying a private policy, often called LTC insurance.

Treat LTC insurance like any other type of insurance. You wouldn’t think of going without homeowner, medical, auto or life insurance. Why go without insurance that protects you from the financial devastation of long-term health care?

Don’t rely on the kids. Most people don’t want to be so poor that they must depend on their children, and care giving is very expensive to the caregiver in terms of lost wages and decreased future benefits.

Medicare doesn’t pick up most of the tab. Medicare pays for limited nursing home care (skilled care for 100 days or less) and for limited home health care, but it doesn’t pay for long-term custodial care.

Avoid Medicaid. Medicaid, the federal/state health care program for the poor, will pay up to lifetime for long-term care, but to qualify for Medicaid you must be impoverished. Also understand that Medicaid doesn’t pay all the costs of the nursing home bill that you can’t afford.

Better alternatives to nursing homes. Most long-term care policies pay for in-home care, as well as the increasingly popular assisted living facilities (which usually don’t accept Medicaid patients). A long-term care policy pays for adult day care, respite care, home modifications, and other housing alternatives.

The Investment Professionals at First Reliance Financial Services can answer all your questions about retirement investing and help you get started in the best plan for you. Don’t leave retirement funding to chance.

To schedule a free consultation, or if you have any questions, call 1.888.543.5510.

Important Consumer Information:

This site is for informational purposes only and is not intended to be a solicitation or offering of any security and;

1. Representatives of a broker-dealer ("BD") or investment advisor ("IA") may only conduct business in a state if the representatives and the BD or IA they represent
(a) satisfy the qualification requirements of, and are approved to do business by, the state; or
(b) are excluded or exempted from the state's licensure requirements.

2. Representatives of a BD or IA are deemed to conduct business in a state to the extent that they provide individualized responses to investor inquiries that involve
(a) effecting, or attempting to effect, transactions in securities; or
(b) rendering personalized investment advice for compensation.