How should you plan for long-term care?

| Mar 11, 2021 | Uncategorized

If you are 65 or older, odds are you will need to consider long-term care. According to Morningstar, in the United States, about half of people turning 65 will need long-term care at some point in their lifetime. On average, women require about two and a half years of care, whereas men may require about one and a half years of care.

Given the expense of nursing home care, many people need to have a long-term care plan in place.

Consider whether care will be necessary

Not every adult requires long-term care. You cannot predict what the future will bring. For some people, long-term care is sudden due to a health crisis or accident. For others, it is something that they can plan for. You should take into consideration your current health, age and the likelihood that you may need long-term care in the future.

Consider costs and organize your resources

One of the most critical elements of planning for long-term care is to wrap your mind around the cost. The median rate for a private room is about $100,000. If you can estimate the cost of long-term care, you can consider how you would pay for it. Look at your assets first. Would your assets cover your long-term care? If not, you may need to create a fund.

Consider insurance policies

If you purchase insurance for long-term care, you have to choose between a standalone policy and a hybrid policy. Standalone policies do have premiums attached and you may not qualify with certain underlying conditions. A hybrid policy, on the other hand, have less stringent screenings.