Effective planning for your long-term care needs involves evaluating your financial situation and developing a financial safety net in the event that you, your spouse, parents, or others financially dependent on you may require long term-care.
Your financial safety net plan needs to accomplish the following goals:
- To have the financial resources to pay for quality care at home or in a long-term care facility.
- Protect savings, assets, and the standard of living for both the ill and healthy spouse.
- Prevent being a burden and dependent upon children or other family members.
- Conserve your estate and ensure an inheritance for your heirs or other beneficiaries.
- Avoid becoming impoverished and having to rely on the Medicaid program.
To pay for long-term care costs, you have four choices:
- “Self-insure” by paying for all the care that you, your spouse, or your parents may need.
- Become dependent on another person, i.e. your children or grandchildren.
- Spend down all of your assets and pay for care until you qualify for Medicaid.
- Transfer the risk of these catastrophic expenses to a LTC Insurance Policy.