Medicare will not pay for all of your health care needs.
If you plan to live long and not have to pay for health care, you are mistaken.
You are not invincible.
None of us is.
Chances are you and I will need long-term care at some point in time.
According to The Memphis Daily News article, titled “Long-Term Care – Not for Everyone,” at least 70% of Americans over age 65 will become disabled in some way and need such care.
The bad news for those who do not plan ahead?
Medicare puts limitations on what it will cover and for how long.
You cannot turn to Medicaid without spending down your assets.
What does this mean?
Leverage your retirement portfolio and long-term care insurance.
Setting money aside early into your retirement portfolio can help to grow your nest egg, giving you a greater buffer when it comes to health care costs.
More importantly, you should purchase long-term care insurance.
Many people neglect this, preferring to take the risk.
Unfortunately, this poor choice cannot be undone.
Start looking for coverage around age 55, when you are in good enough health to qualify.
Gretchen and I purchased our long-term care insurance policies when we were age 49.
(Yes, I "eat my own cooking" when it comes to my legal and financial planning advice.)
If you wait too long, you will be out of luck.
In addition to discussing how to pay for care, you need to talk with your family about your options for care.
Maybe you are planning for your family to be your caregivers.
Although this may be an option, caregiving can strain relationships and finances.
Discuss this with all members of your family and be prepared to provide monetary support to those taking care of your needs, especially should adult daycare or a nurse aide be necessary.
No matter how healthy and active you are now, entropy is real.
In addition to discussing with your family members, consult with an experienced estate planning attorney before it is too late.
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: Memphis Daily News (July 29, 2016) “Long-Term Care – Not for Everyone”