Long Term Care Needs To Be Part of Retirement Plan

According to certified financial planner Jane Young, as your retirement grows closer, the decision on how to pay for potential long-term care expenses becomes a serious concern. 

She writes that the high costs of long-term care and what she says are the high costs of Long-Term Care Insurance, there isn't an easy solution. 

You may have seen the initials "LTC." LTC stands for 'long-term care' and refers to the services and supports you will need at some point in your life with daily living activities or supervision due to memory loss. This care is both assistance with medical or nonmedical personal care needs. 

The activities of daily living typically include things you learned how to do as an infant, including eating, bathing, dressing, and using the toilet and continence. People require extended care due to an illness, accident, or the impact of getting older.

Need for Long-Term Care Increases with Age

As we get older we are more likely to need some type of extended health care. You probably have noticed changes in your health and body in the past twenty years. Just imagine the changes in your health, body, and mind in the next 20+ years and the impact these changes will have on your family and finances.

Ways to Pay for Future Long-Term Care Services

Young says when you have long-term care expenses they can be paid with a combination of personal or family savings and Long-Term Care Insurance. 

Medicare does not cover most long-term care expenses. Medicare will provide 100 days of nursing home care after a three-day stay in a hospital. Medicaid will pay for long-term care after most of your assets have been depleted, but Medicaid is usually limited to nursing home care.

Deciding if You Purchase Long-Term Care Insurance

She says the decision as to whether or not to purchase Long-Term Care insurance is straightforward for the affluent. For those with little or no assets, they must rely on Medicaid for their long-term care expenses. 

The decision is more complicated for those who can't afford to self-insure but want to protect their assets to provide a livelihood to a surviving spouse, an inheritance to children, or avoid being a burden on their family.

Partnership LTC Insurance

This is where the Partnership Long-Term Care Insurance program can be very beneficial. Even a small policy provides substantial dollar-for-dollar asset protection. LTC Insurance is custom-designed, and premiums can vary over 100%. Shopping with a Long-Term Care Insurance specialist can help you find the best coverage at the best value.

Young writes that individuals who are at the greatest risk for needing long-term care services are those with a history of a chronic condition such as high blood pressure or diabetes or have family members with a chronic condition history. 

You may also have a higher risk of long-term care if you have poor health or poor diet and bad exercise habits. Women are at greater risk of needing long-term care than men because, on average, they live five years longer, she says.

Even if you have good health and diet and exercise habits, you are at high risk since your longevity will be greater. As you get older, you increase your risk of cognitive decline. Either way, planning for the financial costs and burdens of aging is an essential part of a retirement plan.

Access Choice of Quality Care

Long-Term Care Insurance offers you guaranteed tax-free benefits to access your choice of quality care either in your home or in a facility. You maintain your control and independence, and your family has the time to be family.

The best time to start researching long-term care is when you are in your 40s or 50s. Generally, your health will be better and it will be easier to qualify for coverage. LTC Insurance is medically underwritten, with each company with its own underwriting rules.

Premiums are based, in part, by age at the time of application, health, family history, and the amount of benefits you wish to have in place. 

Give your family peace-of-mind knowing you have a plan, and they will have the time to be family.