Here’s a conversation that most people don’t want to have: planning for long-term care.
However, it’s an important conversation to have, especially as we get older. So much so, that the insurance industry has declared November as Long-Term Care Insurance (LTCI) Awareness Month.
Did you know that neither your health insurance nor Medicare would pay for extended long-term care services in the event that you needed them in the future? If you develop a chronic illness or become disabled and can no longer care for yourself for an extended period of time, you’ll need long-term care services.
The harsh reality is that everything you’ve planned for in retirement could be wiped out if you don’t address this and have a plan when it happens. No one wants to admit they will need long-term care—NO ONE.
Planning for Long-Term Care: Do I need long-term care (LTC) insurance?
There’s no way to know for certain if you’ll someday need long-term care either in your home or in a specialized facility. But it’s likely when you consider that people are living longer than ever.
In fact, the U.S. Department of Health and Human Services reports that those turning 65 today have a nearly 70% chance of needing some type of long-term care services as they age, and 20% will need it for longer than five years.¹
Is LTC insurance worth it?
Many people find long-term care insurance worth it because it offers peace of mind knowing that they won’t drain their assets or put undue pressure on family members.
Long-term care insurance steps in if you develop a health condition that requires you to receive care and supervision. This could mean home health care, nursing home care or personal or adult day care. Many people mistakenly believe that Medicare or Medicaid would cover their care expenses, but this is often not the case.
Without long-term care insurance in place, you may burn through your life savings or have no choice but to rely on a family member for care. Long-term care insurance protects your assets, spares your family from financial and emotional stress, and puts you in control of your health decisions.
Consider your LTC options.
When it comes to long-term care insurance, most people are afraid of paying too much for a program they may never use. However, remember that statistically, we know that about 70% of us will end up needing some sort of long-term care. Be sure to explore the different products available to determine which is best suited for your family’s needs.
Unfortunately, the Office of Personnel Management (OPM) suspended applications for coverage under the Federal Long Term Care Insurance Program (FLTCIP) as of December 2022. The suspension will remain in effect for 24 months, unless OPM issues a subsequent notice to end or extend the suspension period.
Without a current employer-sponsored program, there are a lot of creative options in the private sector to help federal employees manage this very real problem.
For more information on your LTC options, be sure to watch my webinar replay on “What are the Odds? – Planning for Long Term Care.”
In this webinar, I explore your options to weather the financial storm of needing extra care as you age—even in the absence of a government solution.
No matter where you are in your career, I would encourage you to at least consider the prospect of needing long-term care insurance. The right coverage can help protect your retirement savings and assets in the event you or your loved ones ever need long-term care.
If you’re ready to get serious about planning for your retirement from federal service, register to attend a workshop today!
Source:
¹U.S. Department of Health and Human Services
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