Why and How
to Start Planning for Long-Term Care
According to the US Department of
Health and Human Services, “someone turning age 65 today has almost
a 70percent chance of needing some type of long-term care
services and supports in their remaining years.” It may not be the
most pleasant discussion topic, but getting ahead of the game with
long-term care can improve your chances of maintaining your quality
of life for years to come. These tips will help get you started in
the process.
Photo Credit: Pexels
Planning for Care
The first step is to plan. This can be
done by assessing your likelihood of needing long-term care and
making efforts to prepare for it.
Look at Your Lifestyle
Do you eat a healthy
diet? Do you exercise regularly? Do you drink
excessively or use recreational drugs? How you answer these questions
can have a lot to do with whether you will need long-term care, as
well as what level of care you will need if you do need it. Taking
any measures you can to maintain your health can significantly reduce
your risk of injury and illness. Also, eat with nutrition in mind,
and make your body stronger through fitness.
Don’t drink excessively or do drugs, and think of any other ways
you can improve or maintain your health.
Modify It
You can also set yourself up to age in
place by adding
home modifications now that will be useful down the
line. Do some research and think of any upgrades that could keep your
home accessible when you’re older. A few examples are:
- Installing railings on both sides of the stairs
- Using automatic night lights
- Removing all loose carpeting and/or rugs
- Widening doorways to 32 inches
- Installing levered door knobs
Moreover, making these modifications,
along with others, can help you save money on the costs that come
with long-term care.
Check for Hereditary Conditions
Considering your family history is
another way to assess the probability that you will need long-term
care. Is there a history of coronary disease, diabetes, early onset
dementia, or other condition/illness in your family? Along with
helping predict your chances of needing care, the answer to this
question could impact whether you qualify
for long-term care insurance.
Paying for Care
Next up is paying for long-term care.
Here are some of the options.
Tweak Your Retirement Plan
A lot of seniors go to great lengths to
form elaborate plans for retirement, only to leave out one important
factor: the possibility of needing long-term care. If you do end up
needing it and haven’t prepared, it can take a good chunk out of
your retirement savings (if not all of it). Making long-term care a
part of your retirement
plan can help prevent this shock.
Consider Insurance Programs
Long-term care (LTC)
insurance can be a great option to pay for future costs. Whether you
qualify for it can depend on your age and financial situation. While
you can apply for LTC insurance in your 50s or 60s, you can get
covered at a better rate if you get it in your 40s. If LTC insurance
is not available, check to see if you can add a rider to an existing
life insurance policy, which uses a portion of your death benefits
for long-term care.
Save
Another option is to open a health
savings account (HSA).
You can currently deposit up to $3,450 per year of tax-deductible
contributions and an additional $1,000 if you’re age 55 or older.
If you have a family insurance plan, you can deduct up to $6,850 per
year. Also, any money left over in an HSA will roll over to the next
year, and most withdrawals are tax-free. Along with HSAs, you can opt
to use your personal savings. This means you save up enough money to
pay out-of-pocket or designate some of your investment plan for care
expenses.
Long-term care is not something you
want to think about. It’s not something you want to plan for.
However, it eventually becomes a reality for most people. The best
time to prepare for long-term care is before you need it, so start
planning for the possibility and costs today.
Article by Lydia Chan.
Lydia is the co-creator
of Alzheimerscaregiver.net, a website that aims to provide tips and
resources to help caregivers. Her mom was diagnosed with Alzheimer’s
and Lydia found herself struggling to balance the responsibilities of
caregiving and her own life. She is passionate about sharing her
knowledge and experiences with caregivers and seniors. In her spare
time, Lydia finds joy in writing articles about a range of caregiving
topics.
