A good financial plan has two integral parts. The first one is focused on building wealth and creating a strategy in order to turn savings and investments into a source of steady income in retirement. The second is about creating a sound contingency plan for unforeseen events such as long term care.
Hoping that you’ll never need long term care may be a good mindset, but positive thinking will not protect your finances from the damaging effects of long term expenses to your nest-egg, quality of life, and loved ones.
Estimates show that 7 out of 10 65-year-olds will need long term care and 40% of younger individuals aging 18 to 64 years old will also require care services at one point. Based on these figures, anybody is vulnerable to needing long term care—may it be due to accidents, old age, frailer health, health problems or cognitive decline.
Over the years, the care services and settings have a continuous increase in rates. From 2012 to 2013, the cost of staying in a nursing home and assisted living facility has increased by 4%, while in-home care rates have hiked up by 1%. Based on this data, the cost of care services is not expected to go down in the coming years, especially that there’s an impending rise in demand for long term care due to the influx of baby boomers entering their golden years and people having longer life spans. In fact, it is estimated that long term care expenditures will reach $364 billion by 2040.
Facing long term care without any plan is one of the biggest financial dangers that you can face. The good news is, you can manage this risk through long term care insurance—a policy that’s specifically designed to pay for all levels of care and a wide range of care service and settings.
Though having long term care coverage is a sound strategy, it’s important to determine how you can factor in a long term care insurance policy in your financial plan or if it matches your situation in the first place. Read the full article here: http://www.ltcoptions.com/include-long-term-care-insurance-financial-plan/.