Don’t shortchange your golden years by not thinking long term
October 23rd, 2024 by admin
All lawyers who assist people with long-term care planning and the expense of it, often called Elder Law, will tell you the same thing: You should consider purchasing long-term care insurance when you are in your mid-forties and early fifties (or even later if it is reasonably affordable) while you still have your health. A lot of elder law planning costs, including legal fees in addition to basic estate planning documents, can be reduced significantly if you have a solid long-term care policy with good options.
Because the odds are a good percentage of those who reach their seventies are going to need long-term care. In a real sense, the most impactful long term care challenges are the financially debilitating costs to your family, and the consequential limiting options for your level of care.
Long term care planning requires long term financial planning as well.
The next two columns will address some of the key questions one should ask about long-term care issues :1. Who should purchase a long-term care policy ; 2. What provisions should be included in the policy; 3. When should one purchase a long-term care policy; and 4. Where can one find financially solid companies which sell good policies?
Because a solid cost-benefit analysis significantly favors purchasing a good long-term care policy.
But first, some assumptions you may make which are just not so:
- Medicare will cover your long-term care costs. Fact: Medicare does not typically cover custodial care. (But skilled nursing care is different.)
- You will never need long term care insurance. Fact: If you are sixty-five or older seventy per cent or more will need long-term care.
- You will be able to take care of yourself or your loved one if you become chronically ill and need long term care. Fact: Unless another family member who lives in the household can bath you, deal with incontinence issues, dress you regularly, prepare your meals and get you to eat them, assist you with toileting, and is physically able to transfer you from your bed, to the bathroom, and to get you in and out of a motor vehicle, this is not so.
- There is only one type of policy to help you with long-term care. Fact: This is not so. Talk with a professional to learn about your options.
- You cannot qualify for long term care. Fact: This is not likely. Seek a trusted professional to advise you regarding your options. But the sooner you purchase a policy—while you are in your mid-forties and early fifties and in good health—the better.
- Friends who are well-intentioned but with no specialized knowledge will know enough to provide you with your best options. Fact: this is not so. Like a smart person you know who googles something on the Web which sounds good.
- You must cover all your long-term care costs with a policy. Fact: This is not so. These costs are more than you have any reason to know. Any policy income stream can help you pay a good portion of the costs of long-term care between what the policy pays and your other assets.
One should always have up-to-date basic estate planning documents, of course—will/will and a trust, financial power of attorney executed with statutory changes passed in 2018, and a healthcare power of attorney. But several of the more costly elder law expenses can be avoided or reduced significantly if you have a solid long-term care insurance policy in place.
Next column: Other important long-term care choices you should consider.
Remember: An informed choice is a smart choice.
Mike Wells is a partner with Wells Law, PLLC in Winston-Salem. His email address is mike@wellslaw.us and his telephone number is 336.283.8700. His legal column has been published continuously since 2003.
Posted in: WS Journal Articles