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5 Reasons To Put A Long Term Care Plan In Place

5 Reasons To Put A Long Term Care Plan In Place

February 25, 2021

Ensure you and your loved ones can have a sense of security knowing they ''ll be taken care of.

About 70% of Americans over the age of 65 will need some form of long-term care. Even those under the age of 65 face the risk of injury or illness that could require long-term care.1 This can be very costly in retirement. The good news is that long-term care insurance specifically to help cover these care costs. It gives you the power to decide the retirement you want for yourself and your family.

1. You don't want your care to become a burden to your family

The odds show that there is around a 70% chance you will need some degree of care if you live past the age of 65, with the likelihood of needing care increasing as you get older. In some situations, long-term care can range from $54,912/year for homemaker services to over $105,850/year for some nursing homes. Generally, long-term care costs are on the rise. Also, family members are less likely to provide unpaid care in today's world.

Planning for long-term care means less emotional and financial stress for your family. It may help you maintain your lifestyle and minimize the negative impact on your loved ones. Involve your family in the process because how you plan to address your potential care will affect your family.


2. You want to ensure that you save and protect your hard-earned retirement assets

Chances are you've worked extremely hard to save for retirement and to ensure financial security for your family. You have accumulated enough money and assets to have your ideal lifestyle in retirement. However, you do not want to risk losing this potential lifestyle. The high costs of long-term care have the potential of depleting a lot of your money and assets in retirement. Ensure that your retirement plan includes a long-term care policy that will protect you from the costly circumstances life may bring in the future.

Planning may save your retirement assets and income for other uses. Increase the potential of being able to leave an estate to your heirs.


3. Your health insurance generally does not cover the cost of long term care needs 

When it comes to health insurance paying, most insurance forms only cover skilled, short-term, medically necessary care. Medicare and private health insurance don't cover most long-term care services. If you don't have insurance to cover long-term care, you will have to come out of pocket on expenses. The average yearly cost for a home health aide is $50,336. Most health and disability insurances won't cover long-term care, but long-term care insurance will.

Planning may help protect your savings and ensure you more care options in retirement. 


4. Your good health is not a given

Being healthy usually does not mean that you will not need long-term care. The healthiest people are generally the ones needing some assistance later on in life. If you need more than four or five months of long-term care at an old age, you will be glad you had long-term care insurance. A long-term care policy insurance for a generally healthy person will allow for home care and a relatively independent lifestyle. Most policies today will cover home care activities of daily living such as cooking and cleaning.

Planning allows you to maintain your independence and afford quality care.


5. You want to ensure you have good choices when it comes to your care

Although most people do not like to think about it, most individuals know the type of care they'd want as they age. Long-term care can be quite expensive if you do not plan for it. Most facilities have either long waitlists or have costs that are extremely draining for your retirement fund. You want to ensure you have the care and retirement lifestyle you always envisioned, while not breaking the bank.

Planning means that you get the care that you want and deserve in retirement. 

Final Takeaway

During this uncertain time, something we know is certain is our ability to maintain our interdependence in later years. If you haven't looked into long term care insurance, or have any questions about the topic, feel free to contact Morgan Marlin at 404-704-2966