While thinking about the need for a long term care plan is difficult, it is extremely important to consider. If you have an unexpected health crisis, you and your loved ones may not have the means to pay for it. Planning for long term care is more important as you grow older when you are more likely to need care services. You will also want to make it easier on your family while making these difficult decisions. Continue reading for a few reasons as to why you should consider a long term care plan.
The financial burden of long term care
While some retired people have retirement savings, these funds cannot always be easily withdrawn for unforeseen medical circumstances. Typical retirement savings does not automatically plan for long term care. The lack of specific long term care planning can cause major financial struggle for some retirees and their families. You should consider setting funds aside to help pay for long term care needs.
The difficulty on caregivers
Typically when there is not a long term care plan in place, caregiving is put onto family members. This can cause a major financial strain in trying to provide for an older loved one. Many people have to leave the workforce to be able to care for their loved one, resulting in the loss of their income. There is also the emotional burden of a family member having to watch their loved one grow older and struggle before their eyes. It is also difficult because many of these family members do not have proper training in caring for an older individual with health issues.
Medicaid
Medicaid provides benefits for some lower income retirees. You have limited control over your options with Medicaid because it may only cover specific providers and limited services. Medicaid is not required to cover any costs for an assisted living facility, which is the one of the higher costs associated with long term care.
One option to fund long term care is self funding through saving money through savings account and investment funds, most likely a part of your retirement planning portfolio. Another option is traditional long term care insurance. This type of insurance covers the costs of a full time nursing home, for specific timer periods, depending on your policy, and can be used to address your specific needs. Some of these policies can be expensive. A third option is a hybrid life insurance policy that combines some of the benefits of life insurance with long term care benefits. This can sometimes be a more cost effective option.
Long term care planning is not an easy conversation to have but it is essential to consider your options. The costs of long term care can be expensive for many people and can cause a great amount of financial struggle on the retiree and their loved ones. Developing a long term care plan is in the best interest of yourself and your family. To learn more about how we can help, give us a call at (402) 454-7204 or email me at jason@fp-wealth.com
Sources:
https://www.investopedia.com/insurance/longterm-care-planning-its-about-family/
https://www.daveramsey.com/blog/who-needs-long-term-care-insurance
https://www.longtermcareinsurancepartner.com/about-long-term-care/why-plan