Author – Kristen Terranova
Americans are living longer, with many enjoying active, vibrant lives well past retirement. With longer lifespans, however, have also come longer periods of chronic health issues and home assistance needs for many seniors. An estimated 70 percent of adults will need some form of long term care.
At the same time, modern families are often geographically diverse, changing the old assumption that children will be there to care for their parents as they age. Even for those fortunate enough to have family close by, the younger generation may be juggling full-time careers and children of their own, limiting their ability to provide the level of support a parent may need. By the time care is needed, one’s spouse may have passed away, or no longer be capable of the demands of daily care.
Whether you opt for in-home care, assisted living or nursing home care, the costs can be staggering. Medicare and traditional health care plans may not cover all care needs, or provide coverage only for a limited time. Long term care costs can rapidly diminish even substantial personal savings. If care needs persist for many years, or accelerate to higher care requirements, insufficient planning can result in loss of the legacy planned for children, and the inability to afford the desired standard of living in one’s final years.
Long Term Care (LTC) Insurance can help bridge the gap in coverage by health insurance and provide security in the face of unpredictable future care needs. And, the options for incorporating long term care coverage into your estate plan have greatly expanded in recent years. In addition to traditional LTC policies, there are now hybrid life insurance/LTC policies that allow for a death benefit to your heirs if you don’t need care. Annuities with long term care riders can provide a source of ordinary retirement income, with additional income if needed for nursing care. Don’t leave yourself worrying who will care for you and how you’ll afford it. Your team at Deka Law Group can help you consider whether long term care insurance should be part of your estate plan, and connect you with insurance professionals to find the right policy for you.