Plan Now to Meet Long-Term Care Needs Down the Road

 

When it comes to long-term care, many seniors face unpleasant surprises.  It’s an expensive proposition, and most of us require care at some point down the road.  Should you or your loved ones require long-term care, what are your plans?

 

Understanding the costs of long-term care

 

Americans are living longer, and with age often comes a number of health issues.  As CNBC points out, most of us want to stay home in our golden years, even as strength, mobility and general condition wane.  However, care is costly, even at home.  The median cost for an in-home health aide in 2017 was $49,192 per year.  That’s on top of what it costs to make a home more accessible for an aging senior, including investments such as widening doorways for wheelchair users, adding a shower with a bench in place of a bathtub, and paving a driveway that could become slick when it rains or snows, which poses a fall risk.  If you needed to stay in a nursing home, CNBC notes a private room ran $97,455 in 2017.

 

Many people believe Medicare will help with these expenses, but while it is an invaluable source of support, coverage through Medicare for assisted living or nursing home care is minimal.  When it comes to paying long-term care expenses, there are other viable options available to seniors.  Some look to selling a life insurance policy, which can provide a cash payout to help cover long-term care expenses.  Getting a reverse mortgage is another option for many seniors, but it’s important to weigh the pros and cons of that decision to ensure it’s right for you.  Here are some other thoughts to consider regarding long-term care.

 

Research care options

 

The sooner you embark on establishing a long-term care plan, the better.  Where you live can determine what options are available to you.  Researching your options and their associated costs can help determine whether you will be best off with a long-term care insurance policy, a savings plan, or another alternative.  The AARP offers a scorecard based on what is offered in which states, how expensive care is, whether care is easily accessible, support for caregivers, and the overall quality of care.

(editor’s note: Consider Adult Day Centers for a cost savings and for a higher quality of life. Adult Day Centers, such as Aging With Grace, offer seniors an innovative way to improve health and focus on prevention, producing a higher quality of life for chronic diseases and long term care)

 

Traditional long-term care insurance

 

Many seniors opt for long-term care insurance policies.  These policies cover services not typically covered by health insurance, Medicaid or Medicare, including in-home care, assisted living care, nursing home facilities, Alzheimer’s facilities and hospice care.  These policies ensure you will have at least some funds toward your expenses, regardless of where you receive care.

 

Hybrid life and long-term care insurance

 

Hybrid policies are increasingly popular, as they combine life insurance and long-term care insurance into a single policy.  Dave Ramsey explains these plans allow you to apply payout of the death benefit toward long-term care expenses.  If you do not require long-term care, the entire death benefit goes to your beneficiaries.

 

Community living arrangements

 

One trend for long-term care is revamping living arrangements while still independent.  Some seniors opt for continuing care retirement communities, which offer support based on need throughout your golden years.  Seniors can move in while still independent, and enjoy care and support through the rest of their lives.  They get involved with a community which is health and support focused, and enjoy social activities and other benefits and options.  Most communities require a substantial lump sum up front, along with sizeable monthly fees.  Entrance fees range from under $100,000 to upwards of $1 million, depending on location and particular amenities.

 

Other alternatives

 

Depending on your situation, personal savings, a pension or income from investments could be valid options.  Selling assets to pay for care is also a reasonable solution, as long as those assets are readily available when you need them.  Remember that there are often tax ramifications to liquidating assets and withdrawing funds from your resources, so you should explore your situation with a financial advisor.

 

Plan for peace of mind 

 

Meeting long-term care needs can be challenging, especially if you find yourself in a situation where you need care and don’t have a plan.  Establish your strategy for covering care and costs to avoid a financial calamity.  With a sound plan in place, you can have peace of mind down the road.

The post Plan Now to Meet Long-Term Care Needs Down the Road…Guest Post by Hazel Bridges appeared first on Aging With Grace.