Paying for long-term care takes planning.
You want to live a long and full life.
If you do live to a ripe old age, you will likely require long-term care sometime along the way.
In fact, the U.S. Department of Health and Human Service estimates 70 percent of individuals 65 or older will need longer-term care.
Long-term care is expensive.
For a private nursing home room, the median annual cost is $97,455.
According to a recent Kiplinger article titled “The Impossible Reality of Long-Term Care Planning,” paying such bills will take planning unless you are incredibly wealthy.
What should you consider when purchasing long-term care insurance?
You will need to select the correct amount.
A good target is "filling the gap" in the costs between your anticipated cash flow and other fixed expenses.
What are your options?
A traditional police is straightforward but quite expensive.
This is the kind Gretchen and I purchased when we were both age 49, so we locked in premiums (and any future increases) based on that acquisition age.
There are is also hybrid universal life insurance policy with long-term care riders.
What does this do?
It gives people a level of comfort because they will know their level premium amounts.
The premiums will not rise.
If you die without using the long-term care insurance feature, then the life insurance death proceeds will pass to your beneficiaries.
The caveat is the payout will be less than it would have been without the long-term care insurance.
You also will need to meet a certain health criteria to qualify for long-term care insurance.
Discuss your options with an experienced financial planner and elder law attorney.
They can help you determine the best plan for your unique needs should you ever need long-term care.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Kiplinger (January 2, 2018) “The Impossible Reality of Long-Term Care Planning”