Exploring your options for Long-Term Care

December 08, 2022
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Planning for long-term care expenses is an important part of your overall retirement plan.  While it is not a pleasant topic to think about, preparing for the possibility of needing long-term care can help ensure that you have the financial resources to pay for the care you or your loved one may need in the future.

First, it's important to understand what long-term care is and what it can include.   Long-term care (LTC) refers to a range of services that help people with chronic illnesses, disabilities, or cognitive impairments manage their daily activities.  These services can include help with basic tasks like bathing and dressing, as well as more specialized care such as physical therapy or nursing care.

One of the biggest challenges with long-term care is that it can be very expensive.  The average cost of LTC in the United States is over $100,000 per year, and costs can vary greatly depending on where you live, and the type of care needed.  That is why it is important to plan ahead and save for the possibility of needing LTC in the future.

One way to protect yourself is to purchase a long-term care insurance policy.  These policies typically cover a portion of the costs of long-term care services, and they can help protect your savings and assets if you need care.  However, long-term care insurance can be expensive, and not everyone is eligible to purchase a policy.

Health Savings Accounts (HSA) offer another option.  HSA's are tax advantages savings accounts that you can use to pay for qualified medical expenses, including long-term care services.  You can contribute to an HSA through payroll deductions or by making contributions directly in your account.

Hybrid life insurance can be another option.  A hybrid life insurance policy is a type of policy that combines life insurance with long-term care insurance.  This type of policy can provide protection for both the policyholder's life and their potential need for long-term care services, such as nursing home care or in-home care.  The policy may offer a built-in LTC benefit or the option to add a LTC rider to the policy.  This can help ensure the policyholder has the financial resources to pay for long-term care expenses if they need such care in the future by tapping into the death benefit early.


Overall, planning for potential long-term care expenses is an important part of your retirement plan.  By taking the time to understand your options and save for the possibility of needing extended care, you can help ensure that you have the means to pay for the care you want and may need in the future.