No one likes to imagine a future where they might no longer be able to do everyday tasks on their own. But planning for it is one of the smartest financial and personal decisions you can make.
Long-term care goes beyond just future medical needs. It involves help with dressing, eating, mobility, and even specialized support if you develop a chronic condition. The costs can add up quickly, and without a plan, you or your family could end up unprepared.
Building a safety net to protect your health and finances is essential. Here’s how you can get started.
Understand What Long-Term Care Involves
Before you make a plan, you need to understand what long-term care actually looks like. It can mean in-home care, where caregivers assist you with daily activities, or assisted living facilities that provide meals, housekeeping, and personal support.
Other options include nursing homes for more intensive medical care, nurse support, and professional supervision, and adult day care centers that offer social interaction and disability care during the day.
Each option comes with different costs and levels of care. Knowing these differences helps you make informed choices about the kind of support you want.
Estimate the Costs
Long-term care is expensive, and costs continue to rise. Assisted living, for example, can cost thousands of dollars per month, while nursing homes can double or triple that figure. Even in-home care, which is often considered a cheaper option, can add up quickly.
By estimating these costs early in your long term care planning, you can determine how much you’ll need to save, whether you should look into insurance, and how to structure your finances to cover future needs without draining your assets.
Consider Long-Term Care Insurance
One of the smartest strategies for managing costs is long-term care insurance. These policies help cover expenses for services that regular health insurance usually doesn’t pay for. And the earlier you purchase a policy, the lower your premiums will be.
But policies can be complex and come with different coverage limits, waiting periods, and exclusions. There also might be some legal jargon that is hard to understand or follow. It’s best to consult with a financial advisor and formally assess if this option is right for your situation.
Plan Beyond the Financials
While money is a big part of planning for long-term care, it’s not the only piece of the puzzle. Think about the non-financial aspects as well, so you’re properly prepared for the future.
First, take your preferences and needs into account. Would you prefer in-home care, or would you be comfortable in an assisted living facility?
Make sure to put healthcare directives, power of attorney, and a will in place so your wishes are clear. And decide who will be responsible for making decisions or providing support if you can’t.
Revisit Your Plan Regularly
Life changes often. Your health, finances, and family situation today may look completely different years from now.
Review your plan every few years, or after a major life event, to see if it still fits your needs or needs adjustment.
