With people living longer, odds are that many of us will become disabled for some time before we pass away and will need long-term care. The estimates are at least 70% of Americans over age 65 will be impacted, and the majority underestimate the cost.
Medicare does little to cover the costs of long term care and only for a short time period. Medicaid doesn’t apply until the assets of an estate are spent down, so many people must pay for these costs out-of-pocket. There are three ways to pay for long term care: 1) out-of-(deep) pocket payments for care; 2) 1) long term care insurance; and, 3) a plan that helps to avoid total spend-down until you qualify for Medicaid (that’s where we can help!).
Of course, active aging is great, but with age can come injury or illness, so if you are in your fifties or sixties, you should be at least talking about what your long term care plan would look like. (If you are older than that - what are you waiting for!) If your long term care plan includes relying on family members to provide the care you will need, you should know that this plan can take a huge toll on the caregivers—both emotionally and physically—since your adult children must also make time for managing their own households. Be sure you discuss this care plan with all family members ahead of time. You should also investigate other sources of help to add to this plan such adult daycare center and hired help.
Unfortunately, most people who reviewed long-term care insurance policies in the last decade decided it was too expense. If you have not review what’s new in the long term care insurance marketplace recently, now might be the perfect time to take another look. Insurance companies have new, innovative ways in which to use funds to help pay for the cost of care without subjecting you to the 55%-78% premium increases we have seen over the last five years. The best part about many of these ‘new’ long term care policies is that they are not as age sensitive as they once were as long as you do not have a current diagnosis that will likely require long term care.
Finally, there is the individualized care plan that we can help you develop that combines resources from all possible sources. Request a complimentary consultation online or register for one of our workshops with topics of interest to you and your loved ones.
Reference: Memphis Daily News (July 29, 2016) “Long-Term Care – Not for Everyone”