Find Peace of Mind by Financially Planning for Long-Term Care

For seniors and family members, planning for health care typically revolves around planning for Medicare coverage. But for the many seniors who will need long-term care, Medicare offers little peace of mind in terms of paying for expenses. So, if you are making health care plans for you or an older loved one, using the following tips to factor in long-term care costs now could save you time, money and stress later:

It’s not easy to think about you or someone you love becoming ill or injured. But long-term care is something most seniors will need at some point, and should begin planning for now. Your health insurance, including Medicare, will likely only help with a small portion of long-term care expenses, if it covers long-term care at all. It’s also much less stressful to plan for long-term care by saving and starting a financial plan now and not need it, than it is to not plan at all and be suddenly faced with the need for long-term care for yourself or a loved one. You can learn more about why you should be making long-term care plans now by reading this article, and begin making your own plan as soon as possible.

Like many older adults, you’ve likely looked into your health and life insurance options to give you peace of mind in retirement. But did you know there are options for long-term care coverage as well? If long-term care insurance is a financially sound option for you, think about signing up for coverage long before the need for care should arise. By signing up for long-term care insurance at an earlier age, you can save yourself quite a bit of money. For example, rates typically increase by 2 percent to 4 percent when you are in your 50s, compared with a 6 percent to 8 percent increase in your 60s.

Another option for paying for long-term care is to look into cashing out a life insurance policy. Selling your life insurance for cash could be a viable option to obtain funds quickly and with less expense.

Whether you are looking for long-term care for yourself or a loved one, owning a home will open up some additional options to pay for expenses. With home equity, you or your loved one, may be able to more easily obtain the cash you need to cover care. One option that appeals to those who need care, but want to stay in their homes is a reverse mortgage. A reverse mortgage offers scheduled payments from the bank to the homeowner, with no need to repay the loan until the last borrower passes away. This allows seniors to stay in their homes while still receiving funds that keep them stable while paying for long-term care expenses. This is can be a perfect solution for seniors who need long-term care in-home, but are fairly healthy or when only one member needs care.

Paying for care is one aspect of planning for long-term health needs. But if you’re a caregiver, you may also be worried about providing care while paying your own expenses. If you need to leave your job to care for a family member, you’ll need to know how FMLA applies to caregivers. To receive job security through FMLA, you must be caring for an immediate family member such as a spouse, child or parent/guardian. Grandparents are typically not considered immediate family, unless they were legal guardians at some point. Learn how FMLA will help you and other options that may pay you for being a caregiver for a family member.

For seniors and potential caregivers, having a solid plan to cover all the expense of long-term care is a sound investment in the future. Know your options, know how you will pay for care and have the peace of mind of knowing you’re ready for whatever happens in the future.