As COVID-19 continues, more people are considering investing in long-term care policies to protect their financial futures.
Here’s why planning for long-term care is so important.
What is Long-Term Care Insurance?
Long-term care insurance is a type of insurance created to pay for the long-term care services people need as they age or become ill/incapacitated and require assistance with daily tasks like getting dressed, feeding themselves, bathing, etc. It serves to cover the cost of nursing homes, assisted living facilities, in-home caregivers, and all other costs associated with illness and incapacitation.
Why is Long-Term Care important?
When planning for retirement, as unpleasant as it may be, it is imperative to plan for the possibility that you may suffer an illness or disability that drastically increases your cost of living in your later years.
According to a 2019 study by Vanguard Research and Mercer Health and Benefits, around 50% of people over 65 will incur long-term care costs, and 15% will incur more than $250,000 in such costs. Having insurance in place to cover these costs can save your financial future.
What types of policies can help defray long-term care costs?
There are several insurance options to consider:
- Traditional long term care policies
- Asset-based or linked benefit policies
- Permanent life insurance policies
You can learn more about these types of policies here.
Having a conversation with your financial advisor can help you determine how to best prepare for the possibility of needing long-term care. Making a plan ahead of time – and keeping it up to date as life changes – is the best way not only to get the care you need but also to protect your family and your assets after you pass to prevent a dispute.
If you’ve been burned by a financial advisor regarding your long-term care needs, contact our firm today for a consultation.
Gaslowitz Frankel LLC is the Southeast’s premier fiduciary litigation law firm. Our legal team specializes in all aspects of fiduciary disputes representing individuals, executors, trustees, investors, shareholders, and corporate fiduciaries in complex fiduciary disputes involving wills, estates, trusts, guardianships, and businesses.
