I’m perfectly healthy; do I need to think about long-term care?
Let’s start with a story. I grew up with my mom’s best friend’s kids. I thought of Linda and Tom (names changed to protect privacy) as my “bonus” parents. We all spent lots of time together during our childhoods. At some point, whether before he retired as a high school principal or shortly after, Tom took out a long-term care insurance policy. Was he prescient or just good at thinking about the future? I don’t know.
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But when he and his wife were in their mid-70s, both were diagnosed with pretty significant health issues. Their daughter tried to provide the care they needed, but it was obvious that an assisted living facility with memory care was the best, safest option. Tom had already made arrangements for him and Linda at a facility — one of the best, but most expensive — in our area. When they moved in, the financials were already covered, and it was one less area of stress for their daughter and her family to worry about.
You may think that you’re in great shape and will sail through your golden age with few health problems, and for many people, that’s true. But if you have the means to hedge your bets and plan for a “what if?” future, it’s a pretty savvy move. Here are five reasons to plan for long-term care.
1. You could need care at any age.
Even if you’re healthy now, an unexpected injury or illness could leave you needing long-term care. Accidents, strokes or sudden diagnoses happen when we least expect them and can quickly change our need for help with daily activities. Planning puts those options and resources into place just in case you need them. Think of it as setting up a rainy day fund for your health, like you may have done for your finances.
2. Long-term care is expensive.
The cost of long-term care can quickly deplete your savings if you’re unprepared. According to Senior Living, the average cost of nursing home care ranges between $9,555 (semiprivate room) and $10,965 (private room) per month, depending on where you live. Home health aides earn between $25 (Louisiana) and $43 (Minnesota and South Dakota) per hour, according to A Place for Mom, and costs will keep climbing.
Most health insurance, including Medicare, doesn’t cover long-term care. Medicaid does provide coverage, but only if you meet strict income and asset requirements, which often means spending down most of your savings first. Planning for long-term care allows you to protect your assets and ensure you can afford the care you need without jeopardizing your financial security or burdening your loved ones.
3. Protect your assets and your family.
Without a long-term care plan, the financial burden of care often falls on families. Proactive planning protects your savings, investments, and other assets from being used to cover care costs. Your loved ones also won’t have to make difficult financial decisions or provide extensive caregiving themselves. Instead, they’ll be able to focus on supporting you emotionally rather than financially or physically.
4. You get to choose your care.
Planning ahead empowers you to decide where and what type of care you’ll receive (if needed), whether in your home, an assisted living facility or a skilled nursing facility. Without a plan, your choices might be limited based on what you can afford at the moment or what’s available through public assistance programs. Planning gives you the power to maintain control over your future and help your loved ones honor your preferences. This foresight allows you to choose a living arrangement that fits your lifestyle and comfort rather than having to settle for a less preferable situation.
5. It provides peace of mind.
Knowing you have a plan in place for potential long-term care needs offers peace of mind for you and your family. You avoid much of the stress and rushed decisions that can accompany a sudden need for care. Instead, you’ve got a strategy in writing ready to go.
When my childhood friend recognized that it was time to move her parents to assisted living, their finances were in order thanks to Tom’s foresight. He and Linda moved to the facility he’d chosen when they were still healthy. Was leaving their home of 50+ years a difficult decision? Absolutely. But while it was emotional, there wasn’t the stress or worry about wondering how to pay for their care.
No one likes to think about getting older and becoming ill, but long-term planning is a smart idea. Don’t think of it as “preparing for illness” but as preparing for life’s uncertainties.
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