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Long Term Care: It’s Time to Make a Plan

Jun 1, 2024 | Retirement Planning

Long Term Care. I personally feel like this is one of those topics that most people avoid. It’s like death and taxes – we all know it’s going to happen but don’t want it to. Long term care is one of those things that most, if not all of us, think it won’t happen to us, but it is a harsh reality that it will happen to some of us. To add insult to injury, if or when it does, it adds an array of different challenges and aspects to our lives.

Most people refer to it as the “sandwich” part of life. We are at the age that we are still raising children; at the same time, our parents are aging, and we are gaining more and more responsibilities for their daily living aspects. Or we are grandparents finding ourselves in a position that we are raising our grandchildren or our children are barely getting by raising their own kids. It’s a tough situation for the majority of us, regardless of what category we find ourselves in.

Something we should all think about is Long Term Care. With diagnosis such as Parkinsons, Alzheimer’s, dementia, MS, cancer, or any other debilitating diagnosis, we may need the assistance of Home Health Care or Long Term Care.

Two Types of Home Health Care

Did you know there are two different forms of Home Health Care? They are skilled and non-skilled. The difference between skilled and non-skilled comes down to one factor: medical need. Skilled nurses provide medical assistance with medication, wound care and other recovery medical needs. Non-skilled or home care, provider assist with the everyday care and needs. Medicare does not pay for non-skilled home health care. There are some Medicare Advantage Plans that will provide some coverage, but that may not meet the needs that you or your loved one needs.

Planning for Long Term Care

Let’s also be honest, it’s equally easy to be over-insured and underinsured. This is the conundrum we find most of ourselves in. There are a few ways to budget and plan for long term care: 

  1. You can purchase Long Term Care Insurance.
  2. You can Self Insure for Long Term Care.

If your plan is to purchase Long Term Care Insurance, then your best plan is to get it when you’re younger and healthier. Long Term Care insurance is based on morbidity tables. This is different from the mortality tables that life insurance is based on. Simply put, morbidity tables are forecasting the need of long-term health assistance versus passing away. So the healthier you are, the better your chances are of being approved.

When searching for a proper plan it is important to look at your full financial house. Based on present day forecasts, it approximately costs $5,000 per month for in-home health care. Essentially one would assume that most of their income would go towards these costs. It is important to consider this because again it is equally easy to be over and underinsured.

If you are one to gamble on being self-insured, then you should be working with a financial advisor. Work with someone you like, know and trust. Are you truly positioning all of your assets into a product that will benefit you at maximum capacity? There are several things you could utilize depending on what you have to work with. You can pour into a Whole Life Insurance Policy, Annuities and more. Every situation is different; there is not a one-size-fits-all scenario. 

Other Things to Consider

A few other things to consider when planning for Home Health or Long Term Care are the following questions:

  1. Who is going to be responsible for me?
  2. Do I want to remain in my home or move into a facility?
  3. Is there someone that has the means, time and resources to help if I remain at home?
  4. Do I have all my final wishes confirmed legally in a Will or Trust?
  5. Do I have my Power of Attorney in order?
  6. Do I have my Advanced Directive for HealthCare filed?

Get Help From People You Can Trust

At New Season Retirement Solutions, we can help you assess your financial and personal situation, guide you in making a plan for the future, and assist you with putting the necessary pieces of your plan into place. We are local, and we always have your best interests at heart! Contact us to set up an appointment to meet with us – call us 478-845-5301 or send us a message using our website’s contact form.

We will take good care of you!

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