Preparing is still okay, even though many of us still need to make a start. Taking these measures right now may lay the groundwork for your future long-term care needs.
Even though it’s unpleasant to consider, the risk of needing long-term care rises as life expectancy increases. Every one of us has different needs regarding the type and duration of care we receive. While many would like to think otherwise, the fact is that we could be more prepared, at least monetarily.
LIMRA found that just about 3% of people have long-term care insurance, although 29% of people surveyed said they did. While 29% of consumers surveyed by OneAmerica noted they had looked into long-term care plans, only 16% said they had ever used one.
You are one of many people who put off making long-term care financial plans. The positive aspect is that there is still time to do anything. Here are essential things you can do to start planning for your long-term care needs right now.
You can consult the NAIC’s Buyers’ Guide to learn more about long-term care insurance.
It’s accessible in English and Spanish and makes no recommendations on which products or services to buy. As a result, it provides a neutral vantage point from which to consider your options for long-term care insurance.
Share your plans with those closest to you.
Be sure to tell those closest to you about your long-term care plans, whether they be family members, relatives, or friends. In particular, consider how each person may play a part that makes them feel useful and makes the most of their skills.
Your husband may handle the financial aspects of your care, but you can count on a daily visit from a child or close friend.
Verify your insurance policies regularly to ensure the correct people are listed as beneficiaries and have access rights.
Check to see if you have the financial means to cover it.
You have the right to government-funded long-term care as an American citizen. The quality of care you receive in a private institution will likely exceed that a public Medicaid clinic provides.
Think about your financial situation and get ready to self-fund if you can.
Locate a suitable means of putting money away.
There are several options available to you if you choose to self-finance.
- Long-term care insurance that works independently. These plans typically have lower monthly payments than hybrid plans. Unfortunately, they can only be used to pay for long-term care, so the money is effectively lost if you don’t require it. Some individual policies include coverage for both partners under a single contract, which can boost the likelihood that at least one of you will use the range. Financially, the reimbursement requirements can be a burden because they require you to front the money for treatment before you can submit receipts for reimbursement.
- A long-term care premium is attached to a life insurance policy. These are packages that include both life insurance and long-term care benefits. Premiums are higher than they would be for a separate policy. Still, if you don’t need the money for long-term care, it goes to whoever you name as a beneficiary after you die. Payment under the rider is made as a lump sum until the death benefit is depleted or the rider is no longer in effect, whichever comes first.
- Make your own “bucket for long-term care.” It is possible to save for long-term care expenses without purchasing insurance using an annuity or other investing program. No time or investment limits exist on such accounts so that the money can grow to substantial sums over time. Yet, it would help if you had the financial means and self-control to contribute to the fund over a long period consistently.
In addition, state-level asset protection schemes, also known as partnership policies, will not cover any funds you accumulate, unlike most standalone or hybrid insurance policies.
Get the advice of an expert.
Choosing the best insurance policy or savings plan from all the alternatives can be difficult. A trained financial expert can simplify your difficulties and help you zero in on a strategy that fits your needs. They can also advise you on including long-term care savings into your entire budget.
The most crucial aspect of a long-term care strategy is having one. The earlier you begin saving, the larger your sum will be when the time comes. Therefore the earlier, the better.
Nobody can stop the inevitable passage of time, though. Yet, you and your finances can be as ready as possible for tomorrow if you take these measures today.