No one wants to think about the possibility that they may one day need assistance with basic daily tasks, such as bathing, dressing, eating or moving to and from a bed or chair. However, it is estimated that almost 70% of today’s 65 year-olds will some day need Long-Term Care. Health insurance, disability insurance and Medicare won’t pay for Long-Term Care, so it’s important to consider how you plan to pay for your future Long-Term Care needs.

Know your options.

There is no one right answer for everyone when it comes to planning for Long-Term Care.  Your plan for Long-Term Care may depend on your financial situation, your health status and expectations and your living situation, but for everyone, there are several basic options:

• Do nothing: Planning for Long-Term Care can seem overwhelming, so many people choose to put it off. They may believe that they are in relatively good health and therefore at low risk of needing Long Term Care. In fact, almost 70% of 65 year-olds will need Long-Term Care at some point. By doing nothing, you put your assets and your independence at risk. Your existing health insurance, Medicare or disability insurance will not pay for Long-Term Care, so you are left to pay for what care you and your family can afford or to rely on Medicaid. Typically, Medicaid requires that you “spend down” almost all of your assets before you are eligible to receive coverage for Long-Term Care, leaving no nest-egg for your other expenses or any care your spouse may need.
• Depend on your family and friends: In the past, generations of families lived together and cared for each other. Many people still rely on family members (spouses, siblings and children) to provide much of the daily assistance they need. But today, families may not live in the same state, let alone the same house. If you don’t have family members nearby or if their own physical and financial situation will make it difficult for them to provide care, this may not be a good option for you
• Pay out-of-pocket (self-funding): If you have significant income and assets, you may be able to set aside the money to pay for your Long-Term Care. But even if self-funding is a good option for you, it’s difficult to know how much care you will need or how much that care will cost. We have tools to help you estimate the costs of Long-Term Care in your area. You should also consult an expert to determine whether self-funding is right for you.
• Purchase Long-Term Care Insurance: In the same way you buy auto insurance to protect against the risks and costs of an auto accident, you can purchase Long-Term Care insurance, which is specifically designed to cover the costs of Long-Term Care. You can choose the options for coverage and benefits that will allow you to get the services you need and to choose where those services will be provided and who will provide those services. The cost of Long-Term Care insurance is based on the benefits and coverage you choose as well as your age and health at the time of purchase. Click here to learn more about Long-Term Care insurance.