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Published: Mar 24th, 2020

America Experiencing Loss of Independence – What People Fear with Aging

America Experiencing Loss of Independence

The virus fears due to the Coronavirus - COVID-19 - is impacting everyone's life in many ways. Perhaps one of the most significant is our loss of independence. Although temporary, the isolation suggested by experts and mandated by many state and local governments is similar to the loss of control and independence older people experience due to the consequences of aging.

Most Americans value their ability to control their life. We value our independence, and we fear our loss of this independence. As we get older a good percentage of us will need help we normal living activities or even supervision due to cognitive decline. Without advance planning, other people will impose their control over our options. The financial impact is also staggering.

The costs of long-term care services are expensive. No matter the type of care we require, either at home or in a facility, the expenses drains savings and income and adversely impact lifestyle and legacy.

What Goes Up Sometimes Goes Down

Don Strickler, a Long-Term Care specialist and owner of Protecting My Legacy, says the experience of seeing the markets at an all-time high and the losses as a result of panic due to the virus crisis, is reason to seek a solution for your long-term care with the guaranteed benefits of a Long-Term Care Insurance policy.

"History teaches us that a false sense of security develops as the most recent financial crisis fades into the past, but the painful truth is that the next financial crisis can be right around the corner. Last year as we gathered with family and friends to enjoy the holidays, none of us had even heard of the Coronavirus." 

Don Strickler, a Long-Term Care specialist

He says we need to ask the question if you and your family are prepared if the next financial crisis occurs at the same time you need extended care. The losses many people see in their 401(k), IRA, or other assets are only actual losses if you sell those assets. There are people today whose families are forced to do just that.

Market Corrections and Long-Term Care are Both Unpredictable

The timing of needing Long-Term Care in no way correlates to market performance, according to Michele Perloe of Perloe Financial.

"If we need caregiving when our investments are down 20,30, 40, 50 percent or more, we have no choice but to take money out of our savings to pay for that care. For most older Americans, when we take money out of greatly depreciated assets, we will never financially recover," she said.

Many Americans are concerned about their retirement plans and what the unexpected downturn will do to their future. Many people pull money out of their accounts or sell and place them in cash. However, experts say they might not be the best strategy.

According to Charles Schwab, the average bear market has lasted roughly 17 months since 1966, far shorter than the average bull market. The firm says they often end as abruptly as they began, with a quick rebound that is very difficult to predict. The company says that long-term investors are usually better off staying the course and not pulling money out of the market.

Longevity Itself is a Risk That Must Be Planned

People are living longer and more productive lives. You want to be able to have enough money saved to enjoy your retirement without fear or concern about running out of funds. However, experts like Strickler and Perloe say too many people fail to plan for a risk that is more likely than an economic downturn, or unexpected events create panic losses in the market. That risk is the need for long-term care services.

At some point, most of us will need some help with the normal activities we take for granted today. Things like bathing, dressing, and using the bathroom usually are things we just do. However, due to an illness, accident, or the impact of aging, we will often require help with those and other activities-of-daily living.

Longevity also means the longer we live, the more likely we might suffer from cognitive decline. When we suffer from some form of dementia, we will need some supervision to protect us from ourselves.

Family Caregivers Face Many Challenges

Family members are not usually the best option. Caregiving is very challenging for loved ones as they have their own careers, families, and responsibilities. Plus, as we get older, so does the rest of the family. Caregiving is best done by a younger and skilled professional.

Paid care is expensive. The cost of most of these care services will come from our income and savings as health insurance, including Medicareand supplements, won't pay for it. As we drain assets, it harms your lifestyle and legacy.

Hopefully, once the virus crisis disappears, the markets will return as the economy returns to its previous glory. The lesson now is to plan for the financial costs and burdens of aging. 

Long-Term Care Insurance Provides Guaranteed Tax-Free Benefits

Planning in your 40s and 50s allows you to take advantage of low premiums and even qualify for preferred health discounts. However, don't ignore a risk to your savings and your family will have a tremendous impact on lifestyle and legacy.

Avoid the panic and enjoy the peace-of-mind that a Long-Term Care Insurance policy can provide. Start your research now and discover how easy and affordable Long-Term Care Insurance can be. Click here and use the many resources LTC NEWS offers.