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When we talk about long-term care planning we are talking about taking action today to make sure that you have the financial means to pay for care in the future. This care may come tomorrow, next year or 20 years from now. But, if you plan ahead it will not cause devastation to your financial future or the future of your family. There are a few things that you need to think about to make sure that you are doing the most to reduce your risk.

Are you retired? You may have retired many years ago and are living on a fixed income. Your spouse may depend on that income and care for one of you will definitely affect the other partner's quality of life. 

What would you use to pay for care?

- Pensions or Retirement 

- 401(k) or investments 

- Rental Income

- Social Security 

One of the biggest concerns people have is outliving their retirement dollars. If one of you uses a substantial part of these assets then what will happen to the remaining spouse.

Are you married or widowed? If you are married, your spouse may be able to provide care or support during a long-term illness. If widowed, you may  have to depend on your children to provide care or have to look to facility care.

Where do your children live? Demographics of the population shows that our society has been very mobile over the past 30 years.  You may want to take in consideration of where your children live and the possibility of their support when you need care.

How often do you see your children? Many working children see their parents a couple times a year. If they have a family, they  will have two sets of grandparents that will divide their time even more.   How busy are they with your grandchildren? After work your son or daughter may be running one to soccer and  the other to dance.  That is why they call this group the "sandwich" generation.  They are sandwiched in between taking care of their children and taking care of an aging parent.

Do you want your children to provide you care? Most people say they would want to have their children to provide as little of care as possible.  Even though this has been a placed on the female children, we are finding more men are having to provide care for an aging parent.

Would you go live with or near a child so they could provide care? In some cases that may be the only way that you will be able to remain in a home setting. It may not be feasible for the child to move due to their job or family that is established in another part of the country. You may want to find out what care would cost in their area.  Look in our LTC Cost Section to get an idea of the costs.

What type of care do you want? The type of care you receive may ultimately depend on your financial or family situation. However, it is your decision and you need to voice your opinion to your spouse and children to make sure that they understand what there role will be in providing you care.

How is your health? Your health will definitely determine how long you can remain active and independent. Getting long-term care coverage will also depend on your health.  Don't wait to plan for your long-term care when you have a crisis. It will be too late to for us to give you the proper planning and we will have to show you alternate options.

What medications do you take? Medical technology has and will even more in the future allow us to live longer.  You may be taking a prescription today for a condition that may cause a greater problem in the future.   Example: High Blood Pressure may be controlled by medication, but you may have a higher chance of having a stroke in the future.

Have you been hospitalized in the last 5 years? You may have been in for an injury or surgery that may give you an outlook of the future of your health. The reason you were in the hospital may be the first step of health related issues that you will face in your lifetime. Don't be blind to the fact that we all get older and have health issues that may or may not require long-term care.

Are their any health conditions that may cause you to need care or make you a higher risk for needing care?

- Heart disease

- Diabetes

- History of cancer

- Family health history

These factors will give you a pretty good view of your future health.  Each will have astonishing affects on your ability to remain active, healthy and independent. 

Are you still working? During your working years you have many financial goals that you want to obtain before you feel that you will be able to retire. Long-term care is something that is most overlooked in most financial plans.  An accident or illness during your working years may affect how much you have at retirement and when you will be able to stop working.

What would you use to pay for a long or short need for care?

- 401(k) 

- Investments 

- Second Mortgage

- Life Insurance - cash value or some offer long-term care riders

Where would you get $50,000 to pay for care for you or your spouse? A drop in  the market may cause our 401(k) to lose $50,000, but in a year it may be back up the the original amount.  If you took $50,000 out of your investments to pay for care it will take even longer to replace those funds. 

How would this affect your children's education or other goals? Many of us would have to sacrifice our own goals to pay for care of a spouse or even a parent. College savings plans been depleted and real estate sold at lower than market value just to pay for long-term care. 

Do you feel that you are too young for long-term care protection? This is the consensus among "Baby Boomers" is that they don't need this until they are closer to retirement. A couple of things to take in consideration:

- Your health can change at any moment

- Obesity and diabetes 

- If you are uninsurable today, you may very well need care in the future

- Hazardous hobbies or sports make you more vulnerable for serious injuries

How could you afford long-term care protection? There are several options that allow you to obtain long-term care insurance at an affordable cost while you are young and healthy. Some life insurance contracts and annuity contracts offer long-term care benefits. You will need to see which long-term care product best suits your needs.

These are just a few things to take into consideration before talking to an agent about long-term care protection.  They will be glad to discuss how your financial picture and health may make long-term care protection a integral part of your financial or estate plan. Contact Us  today to set up an appointment with a specialist in your area.

Senior Care Concepts, 2008