Pandemic Reveals Need for Long-Term Care Plan Before Retirement

"Put a Long-Term Care plan into place Now!" That was the advice of national financial columnist Terry Savage.

 Why? The answer is because of what is happening during this pandemic. The highest percent of death (42%) is occurring in a long-term care facility. If you have a plan that provides you with the funds to pay for coverage, you will have a lot more control over who gives you your care, where you get your care, and what kind of care you receive. 

The COVID-19 virus has revealed to everyone what existing policyholders of long term care protection have always known - if you have a plan you will be prepared for when you or a loved one needs care.

Here are three things you should look for when considering a long-term care solution? 

Fact - It is Affordable Today

A long-term care solution will never cost less than it does right now. Low-interest rates and more expensive claims will require the future cost of extended care to increase. Presently it goes up by 3.64% a year and has averaged that rate for the last 30 years. This is true for the traditional plans as well as the hybrids; however, the big advantage for the Hybrids is that once you lock in your plan the rate can never go up, nor can the benefits go down.

Your Health Today Gives You the Chance to Prepare

A long-term care plan on the private market is always going to be dependent on your health. Your health at the time of application will impact your rate if you can even qualify for the coverage in the first place.

You could use other solutions other than traditional Long-Term Care Insurance or Hybrid Long-Term Care plans, but they will still require some level of health qualification. 

Before you face a health change, put a plan in force. Work with a Long-Term Care Insurance specialist and not someone who tinkers in this space to learn about your options and help find the best plan for you.

Small Plan is Better Than No Plan

Some coverage is better than nothing at all.  Having a plan in place at the time you need it will make an enormous difference in where, how, and who administers your care. Affordability is paramount. A Long-Term Care Insurance specialist can help you design something that comfortably fits your budget. Income from things like Social Security, interest on savings, pensions, and other investments will still be flowing to you to help co-insure the risk if necessary.  

When you have a plan, you will be treated as a private pay patient and given all the perks private patients enjoy. You will have your pick of facilities and not have your choice restricted. You can select a private room instead of sharing a room with a stranger. Plus, you will have a more significant say in where you get your care. 

Having a plan in place will allow you to stay at home for a longer time to receive care; in fact, it is why a Long-Term Care policy is referred to as a nursing home avoidance plan in many cases. 

There are more advantages to having a plan in place in advance of you needing care. Maybe the most important reason to have a Long-Term Care Insurance solution in place now is the peace of mind knowing you're prepared to address the risk, and you won't be a burden to anyone else when you need care. 

Remember, work with a long-term care solutions specialist to get the ideal custom-built plan for you.

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We are proud to contribute to LTC NEWS with this column. If you have any specific topics you would like to see discussed, please send your ideas to mgoldberg@fpsinsurance.com

Mark Goldberg is President of FPS Insurance, a national insurance agency. Recognized as a Long-Term Care Solutions Expert and Safe Money Strategist, he specializes in helping people protect themselves from what could be the greatest risk to their life savings as they age.