As human beings, we tend to avoid or delay decisions that involve our health and the aging process. Some might call it denial, others just concentrating on the positive. Either way, when we avoid this topic the impact usually falls on the shoulders of our children. Longevity brings us many more years to our lives. However, the impact of this aging means more of us will require long-term care services and supports. For those who have Long-Term Care Insurance, they will have the resources to pay for quality care in the setting they desire. It eliminates the huge draining of assets or forcing loved ones, usually a daughter or daughter-in-law, into the role of being a caregiver. You see, aging and long-term care is all about family.
Writing in Forbes, Gregg Lunceford, Ph.D., CFP says, “Individuals who provide care for extended periods of time often experience a decline in health. Approximately 17% describe their health as fair or poor, compared to 10% of the general adult population. One out of five caregivers report a high level of physical strain, and two out of five consider it emotionally stressful. Caregivers often require care themselves, especially if they have served in the role for a long time. Their personal needs may result in health care costs that could reduce their retirement resources.”
The lack of an advance plan forces many American families into crisis planning. This means you lose control over your life and your assets. One of your children will make decisions as to which account to liquidate for paid care. If the family must provide some of the care themselves they will generally have disagreements as to which one will quit their job or spend less time with their family in order to be a caregiver. The stress on loved ones is tremendous.
“In recent times, there has been recognition of the sandwich generation, where individuals provide for both their children and aging relatives. As of 2013, nearly half of baby boomers had the responsibility of saving for retirement while still raising children and caring for an older adult. This leads to the question: How many of us consider aging loved ones as we prepare for retirement? If we do, how many of us are prepared to support our loved ones, and what is the impact on our retirement future?” writes Lunceford.
He indicates that your retirement planning should include a “multigenerational discussion for potential caregivers to understand what resources will or will not be available to them if they need to act.”
You can read the full article at Forbes: Unanticipated Responsibility How Will Caring For Others Impact Your Retirement
If you have fairly good health and have savings to protect with family you love there is an easy and affordable advance solution to the issue of longevity and long-term care. Affordable Long-Term Care Insurance will protect your retirement funds from the financial costs and burdens that come with getting older. Just as important, for most people, is this insurance helps give the family the time to be family. With the tax-free resources and help with finding the right caregivers, your loved ones will have the time to actually be family … time for you and time for their own family as well.
Being a caregiver is hard and stressful on not just them … but their families as well. Paid care will drain assets and adversely impact your income and lifestyle. This includes the lifestyle of a healthy spouse as well who may live years beyond your future long-term care event. Plus, the question of legacy. How will you be remembered after you're gone? Sure, money is part of it and most people want something to go to children and grandchildren. This is, however, more than just about money. It is about family and memories. What memories will you leave when you are gone? By having an affordable Long-Term Care policy in place, it will help ensure that their final memories will be much better than of being a caregiver and the burden that gets placed on them as a result.
The best time to plan is prior to retirement. Many people start their online research in their 40s or 50s as part of their overall retirement plan. Premiums are based on the age you are when you obtain coverage. This is important not just because of the much lower premium, but because health events and accidents which cause long-term care can happen sooner than you want. Plus, your health can be a big factor for both premiums and the ability to obtain coverage as well.
These plans are custom designed. You get to select the amount of coverage you want. This includes a monthly or daily benefit. This is the amount of money available to pay for care services when you require them. Then you are selecting either an unlimited benefit or a “pool of money”. Unlimited means you can never exhaust your benefits no matter what happens. This is the most expensive option, however, you might be able to add a death benefit or return of premium rider which can make it more affordable … but at the end of life. Otherwise, you get a benefit account which gives you an initial dollar amount. You will want inflation benefits to increase these benefits over time since the cost of care increases as well.
Start your online research by finding the current cost of long-term care services and the availability of tax incentives and partnership plans which provide additional asset protection. Find your state on the LTC NEWS MAP by clicking here.
Be sure you seek the help of an experienced Long-Term Care specialist who works with the major companies. You can find a specialist by clicking here.
Long-Term Care insurance gives peace-of-mind to you and your family as it gives you easy, affordable and rate stable income and asset protection.