Now that you’re still young and healthy, long-term care insurance seems unnecessary. After all, you won’t need the coverage for years, if not decades.
However, according to the Ministry Of Health, one in two healthy Singaporeans aged 65 may require long-term care services, and 3 in 10 could be severely disabled for 10 years or more. This means that at some point in our lives, we will find ourselves needing long term-care whether we like it or not.
Everyone is vulnerable to disability. It may seem unlikely since you are still young, healthy and able-bodied today, but take in mind that life events such as accidents and illnesses can occur anytime, leading to disability. And when that time comes, It is important to have protection through long term-care insurance as early as possible. Otherwise, you may not meet the requirement once you are critically ill already. Besides, getting it later in life also means paying higher premiums.
As we get older, our bodies become more susceptible to illness and injury. These conditions can make everyday living more challenging. In 2019, 14.4% of Singapore’s total population are aged 65 years old and that number is expected to increase to 25% by 2030.
Given the increasing size of the elderly population, it is no surprise that the demand for long-term care services for this demographic will increase tremendously in the coming years. You may have fewer caregivers who are able to look after you. On the other hand, your children may have their own families and responsibilities and may not be able to care for you.
Of course, you might have a lot of choices to rely on such as hiring a private nurse or buying an assisted-living facility, but these can be expensive. The question is, will you be able to afford it?
The average cost for nursing home care is about $1,200 to $3,500 per month before government subsidy, which ranges from 10% to 75%, according to an article from MoneySmart. For a private single bed, it will cost around $4,000 to $6,500 a month.
While getting a long-term care plan can be costly, it never hurts to get one early on because of the various benefits it has in store for you as well as your family.