November 2022
Financial Planning

November is Long-Term Care Month!

By: Corrina Olson

Every day until 2030, 10,000 “Baby Boomers” will reach the age of 65. Statistics show that 70% of people over the age of 65 will use some form of long-term care in the years ahead. By 2050, it is expected that at least 27 million Americans will need long-term care. Costs can vary from $26 per hour for home care services, to well over $100,000 per year for a private room in assisted living and can vary dramatically from state to state. These costs are expected to double in the next 20 years. Buying long-term care insurance is one way to prepare for your future and preserve your financial plan. However, only 7.5 million Americans have long-term care insurance, which is only 2.2% of the entire U.S. population.

Long-term care is a broad term used to describe a variety of services and supports for those who can no longer care for themselves due to age-related impairments. This care can be provided at home or in a facility designed to care for those who can no longer complete activities of daily living on their own without risking their health and safety. Unfortunately, regular health insurance doesn’t cover long-term care, and Medicare won’t come to the rescue, either. It covers only short nursing home stays or limited amounts of home health care when you require skilled nursing or rehab. It does not pay for custodial care, which includes supervision and help with day-to-day tasks. That is where long-term care insurance comes into play! A long-term care insurance policy helps cover the costs of that care when you have a chronic medical condition, a disability, or a disorder such as Alzheimer’s disease.

Considering how significant long-term care costs can be, we recommend starting to look at your options once you are in your 50’s and develop a plan. That plan may or may not include insurance. Whether you choose to self-fund the potential expense or utilize long-term care insurance depends on your situation and preferences. As we meet to discuss your long-term financial plan, we can explore this concept with each of you and find a solution that fits your needs.

To start thinking about long-term care, reach out to the office for our long-term care worksheet. This will help you think through some of the tough questions and prepare for a conversation. To schedule a time to talk about your specific plan and learn more about your options, please feel free to call the office.

If you have questions, please contact us.

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To download the November 2022 Newsletter: CLICK HERE