The cost of long-term care is one of the most pressing worries for retirees.
However, most people tend to worry rather than take action to plan for this possible eventuality. If you can encourage clients to set their goals and considerable the tools available, it’s possible to develop a plan that will be affordable while meeting their needs.
Long-term care is more than just paying for a nursing home. It may entail paying for a caregiver or someone to help clean and cook. Home health care in another alternative, as is an assisted-living facility or a continuing-care retirement facility. The nursing home is the last resort.
Most people want to stay in their own homes, and this is becoming easier as more long-term care is becoming home-based. Many people believe that there will be family to help out, while others are adamant that they don’t want to be a burden. It’s important to discuss preferences well in advance, and plan accordingly.
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When it comes to depending on family members, the issue can become complicated. What if family lives far away, or family members simply aren’t up to the task? On a positive note, some long-term care policies will reimburse family members for helping.
Medicare is not likely to meet long-term care needs as it provides only up to 100 days of care and that must follow a hospital stay. Medicaid will pay for a nursing homes, but this option will require the elderly person to dispose of most of their assets five years before applying, or spend assets down on care for five years.
Long-term care insurance can be expensive, but it is wise to consider a traditional, stand-alone policy. Oftentimes, it’s not as expensive as people fear. Clients should view it like auto insurance – it protects against a catastrophe they hope never to experience.
For more information, please read:
How To Build Your Long-Term Care Retirement Strategy | Stock Investor