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Planning For a Long Term Care Event

Whether you have the conversation with your financial advisor, certified long term care specialist, family member, or spouse, considering a strategy for long term care planning is critical as you plan for retirement. As people age, everyone is at risk of needing some form of care. According to the American Health Care Association and the National Center for Assisted Living, Nearly half of all Americans will need long term care at some point in their lives. In fact, one in five over the age of 50 is at a high risk of needing long term care within the next 12 months. ¹ When considering long term care planning, there are a few key questions to ask yourself:

Should I ever need care for an extended period:
 

Who will provide the care?

Where will I receive this type of care?

 

How much care will I need?

Elderly Couple Contract

Who will I provide the care I need?

Should you need care for an extended period, who could you rely on or trust to handle that responsibility? Your immediate response may be your spouse, family members or loved ones. These individuals are easy to depend on, however if you need care for an extended period, would they be able to alter their lifestyle to care for you? Extended periods of caregiving create physical and psychological strain which could really affect your loved one's own health. This type of care should be assisted by either a home health care aid or a skilled nurse. By having a plan in place, you receive the necessary care that is needed for you and also prevent any burdens towards your loved ones.

 

You may also think government plans such as Medicare or Medicaid cover costs for an extended care event. While some of that may be true, the coverage is limited or has restrictions.

 

 

Where will I receive this type of care?

You have options on where you would like to receive care. Most people prefer to receive care within their home. Home care helps preserve your independence and keeps you closer to loved ones. Depending on where you reside in the US, Home Care tends to be the more affordable choice of care. Statistics show the average daily cost of homecare in the US is roughly $150 a day.*

 

How much care will I need?

According to the U.S Department of Health and Human Services, Women are likely to need 3 to 4 years of care, while men may need 2 to 3 years.** Currently, the annual average cost of care is roughly between $60,000 to $110,000 (cost of care will be based on where the care is received: Home Care, Assisted Living, Nursing Home). On average, policyholders tend to purchase 2 to 4 years of LTC benefits within their LTC plan.

* Genworth Cost of Care Survey https://www.genworth.com/aging-and-you/finances/cost-of-care.html

** Many Americans will eventually need long-term care. Here’s how to pay for it https://www.cnbc.com/2020/10/17/how-to-pay-for-long-term-care-like-nursing-homes-home-health-aides.html

To learn more about LTCi, Contact LTC Genie or request a quote  

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