As Americans age, many of us are coming face-to-face with
friends and family members who need long-term care (LTC). And, as we
watch others grapple with the emotional and financial consequences of a
long-term care event, we can’t help but wonder what the future holds for us and
how or when we should prepare for whatever may arise.
The Cost Factor
The high cost of long-term health care is often startling to
anyone needing these services for the first time. Home health agencies assisted living facilities (ALFs), and nursing homes are fairly expensive and are expected to continue rising in the future as the population continues to age. Add to
this the unsettling predictions about weaknesses in the Social Security and
Medicare systems, and the affordability of quality care often becomes a major issue
for most Americans.
Care Alternatives
If you require long-term care services, you may be able to
receive care in your own home. But, it may take a great deal of planning to
accomplish this goal. Often, it takes the coordination of a team of
individuals, including housekeepers, home health aides, and geriatric care
managers to meet the challenges of everyday life that you once took for
granted.
When remaining at home proves to be too difficult, assisted living facilities (ALFs) may
be a likely next choice. Most offer a private home environment with additional
services, such as on-site meal services, personal care, housekeeping, and
medical care. ALFs are limited
in supply given the growing demand for such living arrangements. As a result,
they tend to be expensive and have long waiting lists. Nursing homes may be the next option to consider. In looking for an
appropriate nursing home, it is important to consider the facility’s reputation
for medical and nursing care, as well as the social environment it offers
residents. Typically, facilities with many amenities and a high
staff-to-patient ratio are the most costly and have the fewest empty beds.
Prepare Now
Future long-term care needs, if planned properly, do not
need to cause financial hardship. One planning solution involves the purchase
of private long-term care insurance.
When
is the right time to buy coverage? A good general rule of thumb is to start
thinking about long-term care insurance by age 40; own it by age 50; and, if
you’re over 50 already, acquire the protection as soon as you can.
Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing company. LTC riders are NOT a replacement for long-term care insurance.
We are not affiliated with any government agency. This information is provided for informational purposes only and should not construed as a recommendation or advice for your unique circumstances. Always consult your own financial, legal, and tax advisors.
