April is Financial Literacy Month, so this is a perfect time to take a closer look at finances and improve understanding of financial concepts. Among the many aspects of personal finance, one of the most important yet often overlooked areas is long-term care planning. It’s easy to think of long-term care as something far off in the future, but in reality, planning for it now can have a significant impact on your financial stability and peace of mind later on.
What is Long-Term Care?
Long-term care refers to a variety of services that help people with chronic illness, disabilities, or the frailties of old age perform basic daily activities. While medical care focuses on treating illness or injury, long-term care focuses on providing assistance with personal care needs over an extended period.
Long-term care can take several forms, including:
- In-home care: Professional caregivers can come to your home and assist with daily tasks.
- Assisted living facilities: These provide housing and care for individuals who need help with daily activities but don't require full-time nursing care.
- Nursing homes: These are more specialized facilities that provide 24-hour care, often for individuals with serious health conditions or advanced age-related disabilities.
- Adult day care services: These offer care during the day, while allowing individuals to return home in the evening.
Why Long-Term Care Planning Matters
The importance of long-term care planning cannot be overstated. As life expectancy increases, more people are living longer, but they may also experience periods of physical or cognitive decline that require assistance. The U.S. Department of Health and Human Services (HHS) estimates that over half (56%) of Americans turning 65 today will develop a disability serious enough to require long-term service and support. 1.
The costs associated with long-term care can be overwhelming. The average cost of long-term care varies depending on location and the type of care needed, but it can easily run into tens of thousands of dollars each year. Medicare typically does not cover long-term care expenses, and Medicaid, which can assist with long-term care costs, has strict eligibility requirements that many people do not meet.
Long-term care is a crucial component of Protection Planning, one of the 5 pillars of holistic wealth management, as it helps safeguard individuals and families from the potentially devastating financial impact of extended care needs. At Evergreen Wealth Advisors, we build every portfolio with these 5 pillars in mind, ensuring that protection strategies are put in place to secure clients' financial futures. By incorporating long-term care planning into the protection pillar, Evergreen Wealth Advisors helps clients reduce the financial strain of future healthcare needs, ensuring their wealth is preserved and their families are protected from unexpected healthcare costs. This holistic approach creates a robust financial foundation that allows clients to enjoy peace of mind today while securing their tomorrow.
The Bottom Line
Long-term care planning is a critical element of ensuring financial stability in your later years. By taking the time to assess your needs, understand the costs, and explore available options, you can better prepare for a time when you may need assistance with daily living.
It’s never too early to start planning.
Schedule a confidential consultation today and discover how Evergreen Wealth Advisors can help prevent financial strain in the future and provide peace of mind for you and your loved ones.
1. https://www.consumeraffairs.com/health/long-term-care-statistics.html#increased-demand