According to the U.S. Department of Health and Human Services, over 70% of seniors will require long-term care at some point in their lives. Despite this statistic, very few people have a plan. Without a long-term care (LTC) plan, your finances will likely suffer if you need to pay for care. You may also put your family members in a challenging situation as they’ll probably take on the role of caregiver or help pay for your care. Here’s a closer look at what long-term care planning is and why it’s crucial.
What is Long-Term Care Planning?
LTC planning refers to how you’ll pay for future care should you need it while protecting your assets. You may need care for several months, years, or even decades, depending on your health and lifespan. Your plan can include the following, and may even be covered by insurance:
- Home modifications to make your home safer, comfortable, and more accessible.
- Technology and tools to help you remain more independent.
- Assistance with housekeeping and personal care like bathing and getting dressed.
- Skilled medical care by nurses or other providers.
- Facilities like nursing homes or assisted living centers.
The cost of long-term care varies. It usually depends on where you live, the type of care you need, how much care you need, and how long you need it.
What is Long-Term Care Insurance?
Long-term care insurance pays for the cost of long-term care needs that Medicare does not cover. It can help with expenses like nursing home care, assisted living, adult day care, in-home care, home modifications, and care coordination.
As you age, a long-term care policy is a vital part of any long-term care plan or financial planning. An LTC policy can give you the peace of mind of knowing that if you face an illness or disability as you age, you can afford the care you need. Also, your children and other family members won’t deal with the significant expenses that may come with your long-term care.
What to Look For in a Long-Term Care Policy.
Not all long-term care policies are created equal. That’s why it’s a good idea to shop around and compare all your options. Be sure to consider the following factors before you decide on a policy.
- Daily Benefit Amount: Depending on the carrier, it usually ranges from $50 to $500 per day ($1500 to $15,000 per month).
- Inflation Protection Amount: The inflation protection amount is significant if you’re younger. Nursing home rates go up every year, so the higher the inflation protection, the better.
- Your Age: The younger you are, the less expensive your premiums will be. Most financial professionals recommend you buy long-term care insurance in your 50s or 60s.
Consult Your Financial Professional.
Together we can review your financial situation and determine the ideal long-term care plan for your situation. Contact us today to get started.
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In addition, Guardian Financial Group specializes in providing strategies and guidance for those who are seeking a better lifestyle in retirement. If you have retirement savings of five million dollars or $50,000, we can ensure it works as hard. As a result, we offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!