LTC services are not typically covered by health insurance plans, which are designed to cover the cost to cure someone.
Extended Healthcare insurance is designed to cover care that is needed when a person has a severe cognitive impairment or is unable to perform basic functions associated with activities of daily living for an extended period of time - such as bathing, dressing, eating, continence, toileting, or transferring.
A person's need for Extended Healthcare is due to their being chronically ill, which can be the result of an accident, sickness or advanced aging. In many cases the need for care is progressive in nature, with the need for Extended Healthcare growing over time.
The insurance provides benefits for care in the following settings: your home, adult day care, assisted living facility, a nursing home or hospice care. It is very expensive, so LTC insurance is one way to help protect your savings and investments against the rising costs of care.
Anyone that has hands on experience of providing care elderly parent knows the importance of planning ahead for their own future Extended Healthcare needs. it is financially draining, very physical and most importantly very emotional on the family.
That is why you should start planning process now - while you have the greatest number of options open to you:
Take advantage of age and health
Calculate your Financial Risk
The need for care presents a major risk to your financial security. Quantifying that risk will help you to plan the impact on your assets and income in retirement. It will help you to plan which asset or account you will draw down to pay the expenses.
Begin by looking at Today's cost and what those costs will be in 30 years when you are more likely to need care. $76,000 annual cost today will be $253,000 in 30 years based on inflation. That equates to $759,000 for 3 years of care.
Note that the costs above are for an individual and will most likely double for a couple. If you don't want to pay that kind of money out of your savings and retirement income, then you will want to consider how to insure yourself against some or all of that risk.
Discuss your wishes and concerns
Its important to have discussions with your family, not only the financial costs but often more important is where you want the care to be given. Many of us want to be able to stay in our own house for as long as possible.
Who will provide the care? Do you wish to avoid having your spouse, children or other family members give the care.
My own personal talk with my family, it was made very clear that our children will not provide the care and would be happier to put my wife or myself in a Long Term Care Facility. This was highlighted when my Mother came to stay with us over Christmas and New Year and she needed help with bathing etc.
Make LTC Insurance fit your budget
It's likely that you have a number of other competing financial priorities on your mind. LTC doesn't need to be an all-or-nothing decision.
Make the coverage work for you
The policy is only as expensive as you make it. Flexibility in design and product features enables the coverage to be available to meet most budgets.
Don't delay call me or fill out the request form.