Long Term Care Planning

It might be said that long term care planning is “out of sight, out of mind” for most people, as this is a subject that no one really wants to examine. That’s because many people mistakenly believe that they don’t need to think about it until much later in life, and that Medicare covers its cost anyway. Since so many of us think that only senior citizens need to worry about long term care, we put off preparing for the possibility. The fact is that untimely accidents or illnesses can strike at any age.

Long term care is the type of care that you may need if you can no longer perform "activities of daily living” by yourself, such as eating, bathing or getting dressed. It also includes the kind of care you would need if you had a severe cognitive impairment like Alzheimer's disease. Care can be received in a variety of settings, including your own home, assisted living facilities, adult day care centers or nursing home facilities.

You may think that long term care services are covered by your health plan, medicare or disability insurance. That's usually not the case. Health insurance is designed to cover medical care for illnesses or injuries, such as cancer, a broken arm, or a stroke. For example, it will pay the hospital bills you incur for a stroke. But it won't pay for long term assistance that may be required afterwards, with activities of daily living, such as dressing or using the bathroom.

As for disability insurance, it is designed to replace the income you lose if you're unable to work, due to accident or injury. Disability benefits will help you pay your mortgage or your normal household expenses. Disability insurance provides no additional benefits for long term care.

Who Pays for Long Term Care? Ultimately, you do. Private health insurance or medicare may pay for some short-tem care but should not be relied on to provide comprehensive, long-term custodial care.

Our professionals provide valuable guidance in assisting clients to define the standards of care needed and expected, and developing a financial plan to support the identified long-term care goals. We help clients determine their risk tolerance level, which is based on each individual client’s asset base. Once that is determined, our professionals perform an analysis of our clients’ long-term care needs. While there are many options for long-term care (including long-term care insurance), we can assist you in evaluating the choice that is most appropriate for you.