ABC News Alert : Prepare For Long Term Care Costs

Learn about the different options for care and how to navigate the system, including self-funding and private pay options.

ABC News Alert : Prepare For Long Term Care Costs
Planning for long term care costs

ABC news recently reported the need to prepare for long term care costs.

The retirement issues for baby boomers are growing daily. Many Americans have viewed aging as the golden years. Many are realizing that those years are not so golden anymore.

Common sense tells us that as we age we will need assistance with things, such as bathing, dressing and even transportation. Did you know that over 70% of those turning 65 years old will need some form of long term care. The Department of Health and Human Services reports that 20 % will require services for over 5 years.

Many aging seniors will need to learn about the different options for care, and how they will pay for this services.

ABC news writes that many are ill prepared to pay for the services they will need. With those aging to 90 years old and older as largest segment of the population , knowing the options for long term care, understanding the types of assistance and the costs can help those be able to navigate the system.

Denial is a strong emotion and many do not realize that most of the care that is required is self funding or private pay. Most rely on family members and the state run Medicaid programs to support their needs.

ABC news points out five tips :

  • knowing the options
  • considering costs
  • understanding Medicare and Medicaid
  • deciding how to pay
  • not delaying the decision.

For many of retirement age, it is too late to purchase long-term care insurance. This is one of the options ABC news does advise for those on the younger end of the spectrum. Some may have the ability to convert an existing insurance policy into some form of long-term care benefit.

ABC news suggests other options may include using retirement savings, seeking insurance coverage or relying on government programs Medicare and Medicaid. A combined approach may be best.

Expert Advice: Plan Ahead for Long-Term Care to Avoid Unexpected Costs

Did you know that 7 in 10 Americans will eventually need long-term care? However, most people underestimate the financial burden it can bring. But fear not, there are alternatives to traditional long-term care insurance that can provide peace of mind. Join our audiocast to explore these alternatives and make informed decisions. We'll also discuss the importance of financial planning for long-term care.

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    When it comes to planning for long-term care, there are various options available to meet your unique needs. From short-term care insurance to hybrid long-term care/life insurance policies, the choices may seem overwhelming. But understanding each alternative will empower you to make the best choice for your future.

    In order to make the right decision, evaluate your personal and family preferences, health status, and potential care needs. And don't forget to seek professional advice before choosing a suitable option.

    Long Term Care Costs are Rising

    Long-term care is all about getting the support you need to live your life to the fullest, even when everyday activities become challenging. Whether you receive care at home or in a facility, there are services available to help you maintain your independence and safety. From custodial care to memory care facilities, the options are diverse.

    Traditional long-term care insurance may not be the best fit for everyone. It can be expensive and may not cover all care needs. Premiums can be high and certain health conditions may disqualify you from receiving a policy. Before committing to a policy, it's crucial to consider all factors and consult with a certified long-term care insurance agent.

    Ensure Your Financial Security in Retirement: Planning for Long-Term Care Costs

    As you approach retirement, it's important to consider the possibility of needing long-term care. With nearly a 70% chance of requiring some form of care as you turn 65, relying solely on Medicare may not be enough. Taking proactive steps to plan for these expenses can save you and your family from financial burdens later in life.

    According to Robert Murray, Insurance Relationship Manager at Bank of America, hoping for good health is not sufficient. Traditional health insurance, including Medicare, offers limited coverage for nursing home and home health services. To address this gap, Murray suggests creating a comprehensive plan that combines different strategies to cover future medical and caregiving costs.

    While self-funding may seem like a viable option, it comes with its own risks. Instead, consider building a conservative and liquid asset portfolio specifically for long-term care. These assets can be placed in a revocable trust or a health savings account (HSA) if you have a high deductible health plan. However, it's important to note that relying solely on self-funding may deplete your assets or limit potential growth opportunities.

    To mitigate these risks, Murray recommends transferring some of the risk to an insurer. Long-term care insurance provides robust benefits but has experienced significant premium increases. However, premiums for these policies can be treated as qualified medical expenses and paid for with HSA funds.

    Alternatively, you may explore hybrid life insurance policies with a long-term care benefits rider. If you end up not needing care, your beneficiaries will still receive a death benefit without income tax implications. Permanent life insurance with a long-term care or chronic illness rider is another option if you want to provide a death benefit for your beneficiaries while also having access to funds for healthcare costs.

    Understanding the choices available to you will help you develop a tailored long-term care funding strategy based on factors such as age, family medical history, and available resources. Regardless of the option you choose, taking action now will provide peace of mind knowing that you are prepared for the future.

    Start preparing for your future today and ensure that you can enjoy your golden years with peace of mind.

    Exploring Alternatives to Long Term Care Insurance

    Have more questions? Check out the Frequently Asked Question section of the website. You will find a lot of different questions answered directly.
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