Do Healthy Individuals Need a Long-Term Care Plan?
If you're a member of Generation X (Born 1965 to 1976) or a Late-Boomer (Born 1958 to 1964), the topic of long-term health care has probably come up. These groups have experienced first-hand a family member (parent, grandparent, aunt, or uncle) that required help with activities of daily living or needed to be supervised due to cognitive issues like Alzheimer's or dementia.
When you are in good health, your lifespan becomes longer. Aging itself is a risk of needing long-term health care in the future. We all will see a decline in our health, body, and mind at some point. Aging happens. Good health today allows you the ability to plan for future declining health and the costs and burdens of aging.
The consequences of long-term health care are tremendous as it impacts both a person's assets and their family. Without advance planning, the family becomes responsible either with caregiving or arranging for care. This burden is demanding as adult children usually have their own families, careers, and responsibilities. Juggling these responsibilities along with being a caregiver is challenging.
Today, more people are aware that health insurance or Medicare will not pay for most of these costs. The question of when to plan for the financial costs and burdens of aging is debated. Often a person will say, "I'm young and healthy; I can wait till I am older and need care." However, you have few or no options once you are in poor health. Since people require long-term health care due to illness, accidents, or the impact of aging, the need for care can happen at any time. This is why many experts recommend an advance plan.
I'm in Good Health. Why Would I Need to be Concerned About Long-Term Health Care? | LTC News
Long-Term Care Planning - Part of Overall Retirement Planning
Most people today are planning for long-term care before they retire to take advantage of their good health and the available discounts. Affordable Long-Term Care Insurance will safeguard your retirement savings (401(k) IRA 403(b)) and other assets while reducing the burdens that are placed on the family, often a daughter or daughter-in-law.
Premiums are based on age at the time of application, your health at that time, and the amount of benefits you are requesting. Not only do you save money when you plan younger, but you also lock in the savings as premiums are intended to remain level based on the age and health when you get a plan in place. You also lock in your good health as the policy can't be canceled or changed once issued. If you get a policy at age 52, for example, you lock in age 52 rates and the health you have at that time no matter how long you live.
Longevity Means Higher Risk of Long-Term Care
Advances in medical science mean more people require long-term health care when they are younger as illnesses and accidents that used to cause the likelihood of death no longer do. However, if you don't die but don't recover, you become a long-term care situation.
Long-term care will impact you, your family, your savings, and your lifestyle. Remember, long-term care is a cash flow problem, but it is also a family problem. Adding a Long-Term Care Insurance policy to your retirement plan will add peace of mind for everyone in your family. Your loved ones will have the time to be family instead of being your caregiver.
Most states also offer partnership plans which provide additional dollar-for-dollar asset protection. Partnership Long-Term Care Insurance plans are one of the best-kept secrets in retirement planning - What is a Long-Term Care Partnership Policy? | LTC News.
Most people obtain coverage in their 50s. There are several options to choose from. A specialist in long-term care planning can help you navigate the many available options and help you select the one that matches your individual situation.