As you age, planning for your own long-term care becomes an essential component of your financial and estate planning. Planning ahead can help ensure that age-related challenges do not affect the quality of your golden years.
While it’s easy to avoid thinking about it, taking the initiative to consider the future can help ensure your financial security, asset protection and independence.
What is long-term care?
Long-term care involves services that support individuals who have:
- Chronic illnesses
- Disabilities
- Age-related conditions that require assistance with daily activities
Whether you might need in-home assistance or nursing home care, services can be tailored to your health and personal needs. Approximately 70% of people aged 65 and older will require long-term care at some point in their lives.
Based on these statistics, it is smart to prepare for your golden years even if you’re in tip-top health right now. Due to the staggering cost of long-term care services, planning in advance can help you set aside sufficient funds to afford comfortable accommodation. Without adequate planning, care expenses can quickly deplete the assets you’ve set aside for heirs or charitable causes.
Options for funding long-term care
If you are like most people, you are most likely thinking of funding your long-term care through savings or retirement accounts. While this approach is straightforward, you should know that this option may strain your finances, potentially leaving less for your heirs or other financial goals.
A smart way to protect your assets is to see if you qualify for government-sponsored programs. The key to eligibility is spending down your assets to help ensure that your income and assets do not surpass the set limit. Alternatively, you can explore long-term care insurance for services like home health care, assisted living and nursing home stay.
There is a wide spectrum of policies to choose from and you can settle on a suitable premium based on your age, health status and the level of coverage you desire.
This option can protect your estate from the high costs of care. However, careful evaluation is required to help ensure that the policy you choose complements your financial goals.
Prioritizing long-term care planning before your golden years is a smart way to secure your financial future and protect your estate. By exploring funding options and seeking legal help when creating a robust estate plan, you may be able to mitigate high costs of care while preserving your legacy.
