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Long Term Care Funding

Have you seen or heard about the impact on the families of friends or relatives that have suffered through an extended illness or devastating accident? What happened to their lifestyle and resources? How much was left to support the surviving spouse?

Including long-term care insurance in your financial plan can help you protect your assets so your surviving spouse still has resources to last his/her lifetime. It can also help family members with the physical, emotional, and financial stress of caring for you while enabling you to receive the level of care needed in the setting you most prefer, including your home.

Some practical issues you might consider are:

  • Is there a medical history in your family that may indicate a greater probability that you could need extended care?
  • Where would you like to receive care?
    • At home?
    • In an assisted living community?
    • In a nursing home?
  • Who will take care of you if you need extended care?
  • How long might your caregiver be physically able to care for you?
  • What career or lifestyle changes might your caregiver(s) need to make to care for you?
    • How will this impact their financial future?
  • What is the average cost of the different levels of extended care in your area?
  • How long might you need extended care?
  • How much have you set aside for this contingency?
  • What resources would you draw from to cover these expenses?
    • How will your income tax be impacted? For example, drawing from your IRA to cover these expenses can increase your cost by 30% because of taxes on the distributions.
  • Can you still qualify for long-term care insurance?
  • Does your employer offer a basic long-term care benefit that you can keep after employment?

Planning ahead for this major expense can make a world of difference for your surviving spouse and family, and ultimately how you will be remembered. Why not create a more positive legacy by having a secure plan in place to cover extended care?

The sooner you get started on a funding plan, the more options will be available to your family. To more clearly see how this major life change will profoundly impact your retirement goals and lifestyle, participate in the secure, interactive financial planning lab that seems most appropriate for your current stage in life.