A comprehensive approach to long-term care is critical to your ability to deal with any situation you may face as you age. The older you get, the more likely it is that you’ll one day require some form of long-term care, such as a stay in a nursing home.
While it’s never easy to think about, it’s better to prepare up front than to cross your fingers and hope for the best.
There are many ways to pay for long-term care, including the following:
- Personal assets: It’s not typically the best option, as you can quickly burn through the money you’ve saved for other things. However, if you don’t have any other options available to you, this may be the way to go.
- Long-term care insurance: This insurance is designed to provide you with coverage in the event that you require long-term care. It’s best to purchase a policy when you’re young and healthy, as this is when it’s most affordable. When buying, pay close attention to what’s covered and any limits associated with the policy.
- Medicaid: While Medicare doesn’t provide much in way of paying for long-term care, this doesn’t hold true with Medicaid. However, not everyone qualifies, so you need to start thinking about this well in advance.
- Selling your home: Just the same as using personal assets, this isn’t something most people plan to do. Even if you understand that you’ll never live in your home again, it’s not likely that you want to sell it to pay for long-term care. But, if you don’t have any other options available to you, this may be a last resort.
On the plus side, if you plan for long-term care in advance you can implement a strategy that suits your financial circumstances and future goals.
For example, you could purchase a long-term care insurance policy when you’re young, thus ensuring that it’s there for you in the future should you need it.
If your estate plan doesn’t include a long-term care component, review it today with the idea of making changes in the near future. Once you plan for the potential need for long-term care, you’ll feel better about receiving the care you need as you age.