Susan Wainscott, LTCP
A Long Term Care Insurance Professional
If you are part of the baby boomer generation (born between 1944 and 1964), you already know how important it is to save for your retirement.
Little remains of the security our parents once enjoyed through company and state pensions. Today, the responsibility for retirement savings has shifted from employers to employees, and Social Security provides only a base level of income. Today, it’s up to you to put the “golden” in your “golden years.”
Most likely, you’ve been saving diligently over many years in order to maintain your current lifestyle during retirement. But have you factored long term care (LTC) into the equation?
Many people have not considered what would become of their finances if they or someone close to them became incapable of caring for themselves, even temporarily. Although it’s tough to contemplate, it is likely that you or someone you love may eventually need LTC. Statistics show 40 percent of people currently receiving LTC are adults 18 to 64 years of age.
Range of LTC services
LTC services range from custodial care in the home to medical care in a nursing home. The majority of LTC services provide assistance with activities of daily living, such as dressing, bathing, eating, transferring, and toileting. You are generally considered to be in need of LTC if you have difficulty performing two or more of these daily activities due to physical limitations, severe cognitive impairment, or both.
If you have accumulated wealth, such as retirement accounts or savings, and your funds are sufficient to cover LTC expenses, then you may believe you’re ahead of the game. However, if you hope to bequeath assets to your heirs, the cost of LTC could interfere with the best-laid plans. There may be options, such as selling property or borrowing from a permanent life insurance policy, but these strategies affect the amount of wealth you have to leave to heirs, and there may be tax consequences.
Now is the time to consider preparing a plan for long term care. With a long term care plan, you can minimize the financial risk associated with extended care and relieve the burden of uncertainty for yourself and your loved ones.
Long Term Care Insurance
One of the options to consider may be long term care insurance (LTCI). Should you come to need daily assistance, LTCI can help cover the expenses of nursing homes, assisted living facilities, or even home health care. You may find that such coverage allows you to remain independent while also increasing your options for care.
Many people don’t think about LTC until it becomes a reality for them. As you prepare for your retirement, don’t overlook the possibility that you or someone you love may require LTC. While you don’t know what the future holds, proper planning today for an uncertain tomorrow may help preserve your hard-earned assets and enhance your options for care.