Reaching a stage in our lives when we are no longer able to care for ourselves and need to move into a long-term care facility may happen to any of us someday. It is possible to create a financial plan to pay for that long-term care, but not everybody is prepared for that possibility. For many people, the prospect of moving into a nursing home or similar facility may be too distressing to contemplate. Others likely believe that they are young enough that it could be decades before their health reaches that point.
Though we cannot predict when, or even if, we will need to pay for long-term care, it is important to consider making financial arrangements now. Long-term care insurance is one possible option.
It appears that level of household income and education are factors in whether people age 40 and older have a plan for their long-term care. According to an industry study, the more income and education a person has, the more likely he or she is to have purchased LTC insurance and looked into available services. Income and education are also factors in the chances people have created a directive to let loved ones know their wishes if the time comes that they can no longer do so.
Besides insurance, setting aside savings for long-term care may be another option, as could taking part in the Medi-Cal program. Whatever works for you likely depends on your personal financial and family circumstances. But creating a plan can help with peace of mind by taking away uncertainty.
Source: LifeHealthPro, “Who will plan for long-term care?” Allison Bell, Aug. 15, 2013
