Plan for Long Term Care
Long-term care is a tremendous problem among American seniors and those with disabilities. As the costs for this care escalate, social and demographic changes are impacting the way people deal with this problem.
As long-term care costs become more of a national concern, planning ahead becomes critically important.
Steps
- Assess your needs and risks. Look at your health history and that of your birth family. Your lifestyle affects your health. Avoid (or curtail) smoking and alcohol .
- Don’t simply assume that you will never need long-term care. Your health and your needs may change over time, so make sure you are financially prepared. Although retirement savings will help pay for your care, they probably won’t be enough to cover several years in a nursing home. Buying long-term-care insurance will help defray expenses and allow you to take advantage of different options.
- Don’t wait to buy insurance until you're in your 70s. Premiums at that age are much higher (assuming you can even buy insurance at that point).
- Choose your benefits. Each person has unique desires regarding long-term care. Choose an appropriate payout and benefit period. The average period is two years, but you might choose a longer period if you have a family history of cognitive impairment or other condition that would suggest a need for longer care.
