Question

Riku and Sam are a married couple. They're concerned about long-term care costs and sought quotes for long-term care insurance. Despite their middle-class income, at their shared age of ____________, they found long-term care insurance premiums to be too expensive for their budget.

a) 45
b) 55
c) 65
d) 75

Answer 1

At age 65, Riku and Sam would find long-term care insurance premiums to be too expensive, aligning with the time when Medicare eligibility begins and significant retirement healthcare costs are anticipated.

Step-by-step explanation:

Riku and Sam, a married couple concerned about long-term care insurance, find themselves facing the stark reality of health care costs as they age. Each option presented in the question hints at a possible age at which the premiums may become too burdensome for their budget. Given the provided reference that a couple at age 65 may need approximately $283,000 to cover health care costs in retirement, the answer to the question seems to align most closely with option c) 65.

This age is when individuals become eligible for Medicare, which suggests that the couple would be evaluating the costs of insurance premiums around this time. Furthermore, since Riku and Sam are described as a middle-class income couple and the premium costs are too high for them, it reinforces the idea that insurance costs, including for care insurance, can be quite burdensome at retirement age, especially without the aid of programs like Medicare, which kicks in at age 65.

Answer 2

At age 65, when individuals become eligible for Medicare, Riku and Sam are likely to find long-term care insurance premiums very expensive, reflecting larger national trends of rising healthcare costs for aging populations.

Step-by-step explanation:

Health care expenses are a significant concern for many, particularly as they approach retirement. For Riku and Sam, a married couple examining long-term care insurance, the cost of insurance premiums becomes more burdensome with age. It is likely that at the age of 65, the same age when individuals become eligible for Medicare, they would find long-term care insurance premiums to be prohibitively high.

Their concern is not unfounded. According to the Employee Benefit Research Institute (EBRI), a couple aged 65 may need up to $283,000 to cover their health care costs in retirement. Moreover, as the population ages, the challenge of funding large-scale federal programs like Social Security and Medicare becomes more pronounced. Therefore, planning for potential long-term care costs is critical, and understanding health insurance options, alongside these programs, is crucial for securing a financially stable retirement.