Fall is in the air; the leaves change colors; the nights grow colder and pumpkin spice is everywhere. October is a month to welcome ghosts and goblins and begin to plan for the holidays.
October is also Long-term Care Planning Month, the perfect reminder to review your personal strategies for the future with your One Financial Services advisor.
You don’t have to have lived very long to realize that life can change in an instant. Those unexpected challenges can be made easier for both you and your family with a plan in place to deal with them.
The US Department of Health and Human Services reports that approximately 60% of people will need basic assistance with their daily activities. How prepared are you for that possibility?
What Qualifies as Long-term Care?
The National Institute on Aging describes long-term care as needing assistance with our daily life: grooming, dressing, bathing, cooking, and driving. Sometimes, this help is temporary, such as after surgery, hospitalization, or illness, or the need may be long-term as a result of chronic or terminal illness or the natural aging process which can also necessitate a change of living arrangements.
The Financial Reality
It may come as a surprise that most health insurance plans do not include coverage for non-medical or long-term care assistance for seniors. Options like Medicare cover only limited periods of medical care, rehab, in-home care, or facility stays. Medicaid may cover the cost of long-term care but first, you must have depleted all your assets except for $2000, and the choice of Medicaid facilities or Medicaid in-home services can be very limited.
There are multiple options available to you to pay for long-term care, including specific insurance policies, short-term care insurance policies, critical care/illness insurance plans, annuities with long-term care riders, and deferred annuities, among others.
The Time is Now
Avoiding or delaying planning for this stage of life can present challenges when the need to utilize these services arises. And the longer you wait, the more likely it is that the cost will rise, or in the case of a long-term insurance policy, you might be ineligible due to age or health condition. Planning now can save you money in the future while giving you and your family peace of mind.
Our One Financial Services team is here to help you. Consult with your OFS advisor for options that best suit your financial plan.