Disclaimer: With Medicaid, VA, and insurance regulations frequently changing, past blog posts may not be presently accurate or relevant. Please contact our office for information on current planning strategies, tips, and how-to's.
November is Long-Term Care Awareness Month. Since 1991, this occasion has been recognized by Congress and several states with the goal of raising awareness for the emotional, physical, and financial toll long-term care can take on loved ones. It encourages people to have those difficult conversations about long-term care and plan for their own future dependency. The more your clients understand, the better they can prepare for their care as they age.
Read More: Long-Term Care: The Biggest Threat to Your Client’s Retirement Plan
What Is Long-Term Care?
Long-term care typically entails assistance with activities of daily living. Common long-term care services include:
- Bathing and dressing
- Personal hygiene services related to incontinence
- Assistance with mobility and transferring
- Wound care
- Housekeeping (laundry, vacuuming, etc.)
- Medication monitoring
- Grocery shopping
- Meal planning and preparation
- Transportation to doctor appointments
- Companion visits and emotional support
- Physical exercise and at-home therapy exercises
Unfortunately, long-term care can be quite expensive, and many seniors are concerned about outliving their retirement. Perhaps the greatest risk to their lifestyle and retirement assets is the possibility that they may need long-term care and they may need to use retirement funds to pay for it.
Planning with Long-Term Care Insurance
There are many reasons to plan for long-term care, including preserving assets, maintaining independence, and choosing where to receive care. However, long-term care planning is also about protecting your family. Planning for long-term care with an insurance policy allows individuals to transfer this financial risk to the insurance company and mitigate the burden of care on their loved ones. While caregiving can be very rewarding, it can deplete finances and cause an emotional and physical toll on your loved ones. A long-term care event affects an entire family – the spouse, children, extended family, and friends. Long-Term Care Insurance offers protection by providing future benefits to cover these care costs.
Read More: Is Your Family Prepared to Make Caregiving Decisions on Your Behalf?
Affordable LTCI Solutions
Long-Term Care Insurance is the most affordable solution to your risk of dependency, and policies can be designed to suit a client’s specific financial situation. In fact, the average annual premium our LTCI Specialists are selling is approximately $2,500/year for a single person and $5,000/year for a couple. Additionally, a variety of tax deductions and planning strategies can be used by incorporating 1035 exchanges as well as pension, IRA, and 401k funds.
If you have clients looking to secure their financial future, now is the perfect time to discuss Long-Term Care Insurance with them. Encourage clients to review the list of daily tasks above and how or if their loved ones will be able to assist them with these long-term care duties. It all comes down to safeguarding the future for their family.
