Ensure confidence knowing your parents are covered in a moment of a health crisis
Studies show that about 70% of Americans over the age of 65 will need some form of long-term care. This care includes services that will help your parents live independently and safely when they can't perform everyday activities (such as bathing, continence, dressing, cooking, eating, toileting, transferring, etc.) on their own. As people live longer, these services are in more demand. Therefore, the costs long term care services are continually rising. You and your parents should be prepared for these costs before it's too late. Prepare by taking the following steps:
1. Identify the ideal care for your parents
Although most people do not like to think about it, your parents 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 your parents have the care and retirement lifestyle they always envisioned while not breaking the bank.
2. Identify how you can pay for the ideal care
According to PWC, the average lifetime costs of long-term care are $172,000. Now that we understand how expensive good care can get, let's discuss different ways to pay for it:
- Self-funding- Your parents have the option of relying on their retirement assets and income to cover the long-term care needs. Self-funding will most likely lead to lifestyle and retirement plan changes.
- Family- Your parents may also rely on family and friends to help pay for their care. However, this option may sometimes lead to more stressful times between family and friends too.
- Medicare/Medicaid- Medicare usually covers short-term medical care after a medical event. It doesn't usually cover long-term care services. Medicaid can contribute to long-term care services, but it requires individuals to use most of their income and assets to qualify.
- Traditional LTC Insurance- Will cover long-term care expenses. If the insurance is unused, you may have paid premiums and never need long-term care benefits.
These are a couple of ways to pay for long-term care. Now, it's time for you to identify the pros and cons of each. Preparing with long-term care insurance can give your parents good care and ensure they're covered without putting extra stress and burden on family and friends.
3. Discuss with a professional on the right policy
Long-term care insurance can help your parents maintain their lifestyle, protect assets, and receive the care they want in life. It can be the most cost-effective way to help pay for the high costs of care that may come in the future. For this reason, it is essential to discuss your financial situation and goals with a professional. A discussion will help ensure that you are getting the right insurance policy for the level of care your parents may want.
Determine the policy that will give your parents the care they deserve cost-effectively.
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, please contact Morgan Marlin at 404-704-2966.