LONG TERM CARE = EXTENDED HEALTHCARE
Have you made a plan for a long term care event? People often mistake long term care for “nursing home” care. But a more fitting description for “long term care” is “extended healthcare”.
The most common form of continued term care is provided in-home by a licensed home health agency or family member. If care needs are greater than what can be met in-home, an assisted living facility, adult day care, hospice home, or memory care facility may be necessary.
So, where do you start?
- Do Nothing
- Depend on Family and Friends
- Buy Insurance
Most people are unprepared for the financial and emotional impact of long term care. Without a plan for a long term aid event and the resources to cover the direct and indirect costs, you’re placing your savings, retirement, and home in jeopardy.
DEPEND ON FAMILY AND FRIENDS
Given an urgent situation, most people think they’ll rely on a family member. This may seem like a fitting solution, but with changing family dynamics, this option is becoming less viable.
The number one reason people plan for a long term care event is because they don’t want to burden their family. They know caring for loved ones can be emotionally and financially draining.
If you choose to rely on family to take care of you, make sure they are aware of your decision. Be clear and concise about the kind of care you want including from who and where. Discuss allocating responsibilities to avoid overwhelming one person.
If you have the appropriate amount of income saved, self-insuring may be an option for you. But be aware of how much is “enough”. Even though it’s hard to predict the future, you should consider the current cost of direct care and rising inflation rates, then add 20–30% to cover in-direct costs.
Do you have enough saved? Visit our Cost Calculator Now >>
BUY LONG TERM CARE INSURANCE
For most people, buying long term care insurance is the best option. Many people are unaware of how affordable and useful long term care insurance is for families. Like all insurance, it offers a safeguard and safety net for financial protection and peace of mind.
EMERGENCIES: RISKS & INSURANCE STATISTICS
What are the odds of experiencing a long term care event? Let’s compare this to other insurance risks including coverage for your home, car, and personal health.
|Insurance Coverage||RISK||PERSONAL ODDS||TODAY’S COST||INSURED?|
|Homeowners Insurance||Fire in home||1 in 1,177||$500 – $1000 deductible||Yes|
|Car Insurance||Car crash||1 in 303||$100 – $500 deductible||Yes|
|Health Insurance||Hospitalization||1 in 15||$0 – $3000 deductible||Yes|
|Long Term Care Insurance||Long Term Care||1 in 2||$210,532+ (avg. 2.8 yr stay)||No|