There is no guarantee you are going to skate through life blemish-free. Your seemingly invincible parents may be finally showing signs of their age, and you could start to wonder about what you would do in that situation. The one constant we all share is the inevitability of getting old and having our bodies and minds potentially decline. Do your parents have adequate long-term care plans and resources to fund them and for how long? It may be a reality check for you too. Now is the time to consider whether you are saving enough for when it’s your turn to navigate the aches and pains of the golden years.
Because the need for long-term care, for many people, is still in the distant future, they often put off creating a long-term care plan or even setting aside regular savings for this possibility. According to the Pennsylvania Health Care Association (PHCA), an estimated 70% of people turning 65 may require long-term care in their lifetime. Investment platform, Morningstar, reported only about 8% of the population has long-term care insurance. Life expectancy in America has increased and, along with it, the incidence of brain diseases and cognitive decline, creating the need for long-term care.
When trying to figure out the most beneficial long-term care provider and plan, individuals should consider these ideas to help narrow down the fairly complex process:
Determine your needs or those of loved ones
Before selecting a long-term care plan provider and plan, you first have to determine what type of care you or your loved ones are interested in.
- What gets covered and what is excluded?
- How could premiums now and increases in the future impact your assets and financial lifestyle?
- If you are going to help loved ones, how much will they depend on you financially?
- What type of impact will helping loved ones have on your time, and therefore, your career?
- When do the long-term care insurance policy benefits begin?
- Are there other details to keep in mind? For example:
- Proposed Life expectancy – How long are you expected to live based on your lifestyle, where you live, income level, and genetics?
- Family health history – Do chronic health conditions run in your family? How will that impact your long-term care insurance?
- Gender – Studies show that women tend to live longer than men and are more likely to require assistance from a long-term care facility.
- Company values – Does the provider align with your values?
Talk with friends and family to learn the pros and cons of their policies
It may benefit some people to discuss their questions and concerns regarding long-term care plans with family, friends, or even trusted neighbors who have experience creating a long-term care plan or are currently using one. It could be beneficial, not just for you and your plans, but also for loved ones, like grandparents or parents who may have to rely on care.
Read reviews of companies that provide long-term care insurance –
Abraham Lincoln once said, “You can fool some of the people all of the time and all of the people some of the time, but you can’t fool all the people all the time.” This concept can be used when learning about a company through customer reviews. If there are enough reviews, you can get a fairly accurate reading of how the company treats its customers, the quality of their goods and services, and where customers have had difficulties, so you can avoid them.
Analyzing reviews is essential because even though everyone is so different and every individual's circumstances are personal, humans are similar in that the same general treatment of the customer is universal.
Consult a financial professional
Consider working with a financial professional before making financial decisions regarding your long-term care planning. This process can be complex, and challenges may arise if assumptions that the future will turn out as imagined are entertained. A financial professional has experience managing long-term forecasts and determining the most beneficial approach, while trying to mitigate unnecessary risks and financial obstacles from popping up.
Sources:
phca.org/for-consumers/research-data/long-term-and-post-acute-care-trends-and-statistics/
How Likely Are You to Need Long-Term Care? | Morningstar
A consumer's guide to: Buying long-term care insurance (wa.gov)
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by LPL Marketing Solutions
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