Planning for retirement means thinking beyond daily expenses and income. One of the biggest potential costs for Iowa retirees is long-term care. Whether it’s in-home assistance, assisted living, or a nursing facility, the expense of extended care can quickly drain retirement savings if it isn’t part of your plan. For many people in West Des Moines, Des Moines, Cedar Rapids, and other communities across the state, long-term care insurance is a key piece of protecting both finances and family.
Understanding the Cost of Care in Iowa
In Iowa, the cost of a nursing home stay often ranges from $6,000 to $8,000 per month, and Medicare only covers short-term rehabilitation care. Assisted living and in-home support may cost less, but they still add up over time. Without a strategy, these expenses can erode the savings you’ve worked to build and limit the choices you have for where and how you receive care.
When Long-Term Care Insurance Makes Sense
Long-term care insurance can help cover the costs of care if you are unable to perform daily activities on your own or experience cognitive decline. Policies provide a set daily or monthly benefit, helping you avoid using retirement assets to pay for extended care. For many Iowa retirees, this coverage brings peace of mind knowing that they can choose the setting and quality of care that best fits their needs without burdening family members financially.
Exploring Hybrid Options and Alternatives
Traditional long-term care insurance isn’t the only solution. Many people now consider hybrid policies that combine life insurance or annuities with long-term care benefits. These plans offer flexibility since any unused benefits can go to your beneficiaries instead of being lost. Some retirees in Iowa with substantial savings also choose to self-fund future care, though this requires carefully earmarking assets and planning how to cover several years of potential expenses.
Making Long-Term Care Part of Your Retirement Plan
No matter which route you choose, incorporating long-term care into your overall retirement strategy is essential. Talking through options with a local advisor in West Des Moines can help you understand costs, evaluate insurance, and create a plan tailored to Iowa’s cost of living and Medicaid rules. Addressing this early gives you more control over your future and protects the assets you want to pass on.
Take the First Step Today
Preparing for long-term care doesn’t have to be overwhelming. At Iron Point Retirement Solutions, we help retirees across Iowa explore their options and create plans that align with their goals and budget.
Call today to schedule a long-term care planning session and find out if insurance, hybrids, or self-funding are right for your retirement.