If you’re a member of Generation X (Born 1965 to 1976) or a Late-Boomer (Born 1958 to 1964) the topic of Long-Term Care has come up. These groups have experienced first-hand a family member (parent, grandparent, aunt or uncle) require help with activities of daily living or need to be supervised due to cognitive issues like Alzheimer’s or Dementia. The consequences of long-term care are tremendous as it impacts both a person’s assets and their family. Without advance planning the family becomes responsible either with caregiving or arranging for care. This burden is hard as usually adult children will have their own families, careers and responsibilities.
While there much more awareness that health insurance or Medicare will not pay for the majority of these costs the question of when to plan for the financial costs and burdens of aging is debated. Often a person will say, “I’m young and healthy, I can wait till I am older and need care”. However, you have little or no options once you are in poor health. Since people require long-term care due to illness, accidents or the impact of aging the need for care can happen at any time. This is why many experts recommend an advance plan.
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Most people today are planning for long-term care before they retire to take advantage of their good health and the discounts which are available with good health. Affordable Long-Term Care Insurance will safeguard your retirement savings (401(k) IRA 403(b)) and other assets while reducing the burdens that are placed on family, often a daughter or daughter-in-law. Premiums are based on age at the time of application, your health at that time and the amount of benefits you are requesting. Not only do you save money when you plan younger, you lock in the savings as premiums are intended to remain level based on the age and health when you get a plan in place. You also lock in your good health as the policy can’t be canceled or changed. If you get a policy at age 52, for example, you lock in age 52 rates and the health you have at that time no matter how long you live.
Plus, due to advances in medical science, more people are requiring long-term care when they are younger as illnesses and accidents that used to cause the likelihood of death no longer do. However, if you don’t die but don’t recover, you become a long-term care situation.
Long-Term Care will impact you, your family, your savings and your lifestyle. Adding a long-term care policy to your retirement plan will add peace-of-mind. Most states also offer partnership plans which provide additional dollar-for-dollar asset protection.