Every once in while I see a great article about how annuities can really help in other ways besides guaranteed income and safety. Today I read an article about long term care insurance and thought a lot about annuities and long term care.
While annuities can be a great help as far income goes for retirement they are not well suited for long term care costs unless you can add the long term care rider that a lot of annuity companies are offering now.
Long term care is very expensive and will eat your retirement for breakfast. A specific long term care policy is usually best but in some situations it can be just a good to have an annuity with the rider to pay for long term care costs. How much does care cost? From what I have researched it is anywhere from $56,000 to over $100,000 per year in some areas. Of course it depends on what kind of care you want.
Do you want to stay at home? Do you want a private room? Do you want to share a room? Do you want assisted living? There are so many options that the only real solution is to have solid plan in place to take care of the costs and then choose what you want to do when the time comes. I don't know about you but at $100,000 per year my retirement funds wouldn't last long. And my wife would pay the price by me consuming our retirement money in care costs. In fact she would probably have to go back to work...if we didn't have some sort of long term care coverage.
Learn more about long term care riders right now before it is too late.
Image by Dave Bezaire and Susi Havens-Bezaire on Flickr.com
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