How to Protect Your Assets with Long Term Care Insurance
Long term care insurance covers costs of non-medical care, offering assistance with daily or personal activities. For more details on what Long Term Care insurance is see our blog, Long Term Care insurance Explained.
While putting your own assets into investments can be a great financial move for the future, it is not necessarily the best place to put the money you intend for future long term care financing needs. Using your assets to pay for long term care will result in capital gains taxes which can be more costly in the long run. Additionally the cost of long term care services is on the rise, and is predicted to continue increasing, especially as the American population ages. Long Term Care insurance can help preserve both your assets and your choices.
Why Long-Term Care Insurance Is Essential
The U.S. Administration for Community Living and Administration on Aging found that 70% of 65 year-olds today will require some kind of long term care in their remaining years.
Long term care is not typically covered by traditional health insurance or Medicare. Some Medicare plans will cover up to 100 days of skilled nursing care in a nursing facility but nothing past that. Long-term care is an often-overlooked expense that can have significant financial consequences for individuals and families.
The Financial Risks of Not Having Coverage
In the United States, studies have shown the median annual cost of a full-time home health aid is over $75,000 and residing in a nursing home can cost over $100,000.
These costs can quickly deplete personal savings and other assets. Relying solely on personal wealth can leave families in a vulnerable position, potentially forcing them to sell assets or exhaust retirement funds. A long-term care policy helps manage these expenses, preventing financial strain on you and your loved ones.
How Long-Term Care Insurance Protects Your Assets
One of the key benefits of Long Term Care insurance is that it covers the cost of care services that traditional health insurance or Medicare will not pay for, such as eating, dressing, bathing and many other non-skilled services.
By proactively investing in Long Term Care insurance, policyholders can know that they are safeguarding their financial legacy and reducing the potential strain on family members.
Choosing the Right Long Term Care Insurance Policy
When choosing a Long Term Care insurance policy, there are several important things to consider; your current financial abilities, your assets and how you intend to use them, your familial medical history, and the financial situations of anyone you may depend upon.
After examining your own situation, take a careful look at the policies available to you.
Key Features to Look For
Selecting the right Long Term Care insurance policy requires careful consideration. A few key features to look for include:
Coverage Limits: Ensure the policy covers care in the settings that you prefer, such as assisted living, home care services, and the nursing home.
Waiting Periods: How long do you want to wait until the funds will be available? Premiums may be higher if you are looking for quicker access to funds.
Premiums: Find a policy that balances the coverage you may need with affordability.
Inflation Protections: The rise of long term care costs coupled with inflation makes it doubly important to ensure a policy has the inflation protections that you are satisfied with.
Final Thoughts on Safeguarding Your Future
Protect your bonds, stocks, CDs, and other investments and find the best Long Term Care insurance that fits your needs. In addition to strengthening your future care options, it can act as an asset protection insurance. Protect your legacy while ensuring you receive the necessary care in the future.
Ready to Protect Your Future?
To learn more about Long Term Care insurance and how you can protect your assets, see our explanation of Long Term Care insurance or visit our Long Term Care page. To personalize your Long Term Care insurance coverage solutions, contact us and will help you make an informed choice.
