Saving for retirement is one of the most important things you can do. However, one factor many people disregard is the need for additional assistance and home care as a senior citizen.
As with other investments, the sooner you start preparing for long-term care for yourself and your loved ones, the less stress and the more options you can have.
Consider your income
Many professionals recommend keeping your long-term care premium under 7%. Advisors differ on whether you should calculate this number from your current or future income. The primary thing is ensuring you can get sufficient coverage without a burdensome payment.
Check current nursing home costs and find a policy that can cover most of that expense. Inflation protection may be a good idea.
Review your family’s financial goals. Some programs require you to spend down all assets, leaving little or nothing behind for loved ones, so check the fine print.
Review different insurers
As with other investments, the stability of the provider is crucial. You can have more security when purchasing from a company with a long track record. New operations with little experience could even be scams.
Check the company’s financial solvency and review the firm’s scores with an independent rating agency. Shop different companies for a better idea of your options.
Check your employer plan and existing insurance
Your employer may subsidize the cost of long-term care insurance. Check the company plan to discover possible options. Review your existing annuity policies or life insurance plans. Adding long-term care coverage to your current insurance or investment vehicles can lead to additional savings and may simplify things.
Few people want to ponder the health concerns that come with age. However, you can make life easier and save money by reviewing your family’s potential needs for long-term care.