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Looking Ahead: Know What’s Right for You When It Comes to Long-Term Care
Posted by MSH Insurance on
Most of us will require long-term care at some point in life.If you or a loved one suffers a debilitating illness or injury, what are your plans?How will you cover the costs associated with long-term care?Establishing a plan ahead of time can make the difference in your quality of life and financial well-being should a need for long-term care arise.
Planning for long-term care
Can you rely on Medicare? Many people are surprised to discover how little help is available through Medicare.While it provides vital assistance for many seniors, it’s important to understand Medicare offers limited coverage when it comes to long-term care.The amount of time you can receive care is limited, as well as the services covered.Investing in a Humana Medicare Advantage plan, for example, can help offset the coverage gap. These plans offer the same coverage as Medicare (Parts A and B).On top of that, some plans include benefits for prescriptions, dental care and vision care.There is coverage available for caregiver support, fitness services, and a 24/7 nursing advice line as well.For those with qualifying medical conditions, there is even a “special needs” plan to pay for long-term care costs.
Likelihood for need.Evaluating your current situation can help determine your potential need for long-term care:
Family history. Are there illnesses or conditions that run in your family?Healthline points out many health concerns run in families such as heart disease, Alzheimer’s, cancer, diabetes and high blood pressure.While you can’t alter your genetics, you can make other choices that might contribute to or help to avoid many health concerns.
Lifestyle matters.What lifestyle choices are you making now, and how can you reduce the risk of injury or onset of illness?For example, there are a number of health issues associated with using tobacco products, such as cancer, stroke, lung disease and diabetes.
Aging in place.Are there any home modifications you need to make?Your home can be altered to better support your independence and safety as you grow older.With that in mind, many people are embracing design concepts to help them remain at home through their golden years.
Covering long-term care costs
Crunching numbers. According to some statistics, the average duration of a nursing home stay is around 2.5 years.At today’s costs, that tallies up to about $155,000.Those costs rise at around 5 percent each year, which means in 40 years that total would be well over a million dollars.With those numbers, it’s clear you should have a plan for covering costs should a need for long-term care arise.Consider these factors:
Retirement. How near is your retirement?The closer you are, the more aggressively you need to prepare.Roth IRA notes you can quickly deplete your retirement savings if you don’t have sufficient funds or an appropriate plan for long-term care expenses.
Savings and insurance options. What are the savings and insurance programs available to you now to cover long-term care costs?Health savings account funds can be used for long-term care, or you might have investment annuities available.There are also insurance options, such as long-term care insurance, accelerated death benefits, and hybrid life insurance policies.
Your plan. How do you plan on paying for the costs associated with long-term care?Those who are wealthy can pay for care out of pocket.Another option is to use home equity such as a home equity loan or a reverse mortgage.If you or your spouse is a veteran, the Veterans Administration offers long-term care benefits to veterans and surviving spouses.Or, you might want to sell assets to pay for care such as a vehicle, property, or other items of value.
Plan now for a secure future
Create a realistic plan for the future care of yourself and your loved ones.It’s important to assess your potential need for long-term care and be aware of your payment options.With an established plan, you can look forward to a secure future during your golden years.