Planning for the inevitable that comes with age may not be your main focus. However, the possibility of depending on others for care requires a great deal of planning. If you do not want to see your lifetime of savings depleted, start planning for the future. Something unexpected can happen which is why it is crucial to consider the steps involved in initiating long-term care (LTC). After all, those who fail to prepare are preparing to fail.
What is Long-term?
- Home-based care such as home health aides
- Community-based care such as adult day care
- Facility-based care such as assisted living facilities and nursing homes
Planning for Care
Your financial position and ambitions should be the leading factors in selecting a payment plan for long-term care. Many rely on the government for care rather than addressing the potential need for LTC protection. This is a risky route to take as Medicare and Medicaid programs have strict conditions and constraints. For example, Medicare coverage is only limited to proficient nursing care upon three consecutive days of hospitalization and is only fully applicable the first 20 days of your stay.
Insurance Options
Long-term care insurance is a practical alternative offering coverage for several types of long-term care. Of course, the type of policy you purchase and the services it includes will determine your exact coverage. You are given the option of nursing home-only coverage or an inclusive policy that covers both home care and facility care. Because you are guaranteed a single premium, long-term care insurance allows you to take advantage of existing assets. This could be money you currently hold in CDs, savings, annuities, IRAs, or retirement funds. In this way you can dodge ongoing, non-guaranteed annual premiums (required by other forms of insurance), and your money works more effectively in the case of long-term care expenses. Additionally, the named beneficiaries receive any unused long-term care benefits since it is life insurance.
A study from the U.S Department of Health and Human Services reports that 70% of people turning age 65 are likely to need some form of long-term care in their lifetime. Another study by The Associated Press-NORC Center for Public Affairs Research shows Americans aged at 40 or older are prepared for long-term care.
In Conclusion
As demonstrated by affluent clients, the secret to cultivating your wealth is to understand risks and plan accordingly. In order to make wise decisions, you must take your personal financial situation and plan accordingly. When considering long-term care insurance, this same approach is recommended. Whether you are an individual or family looking at the risks, costs, and benefits involved with long-term care insurance, contact Manhattan Ridge to help determine if long-term care insurance is a smart way for you to achieve peace of mind.