As we age, chances are that many of us will one day need assistance to carry out what were previously simple daily activities. Everyday tasks such as eating, bathing, and dressing can become challenges and require the professional assistance of others. For those who need assistance over an extended period of time, the costs for care can really add up and become a strain on financial resources.
It’s important to have a plan in place to protect your financial well-being against the risk of costly long-term care. Those who don’t have sufficient financial assets to self-insure or those who are eager to protect an inheritance for the next generation should consider insurance options.
Medicare does not provide enough coverage for long-term care, and Medicaid will assist, but only after all other financial assets are gone. Long-term care insurance policies are available in the marketplace and can be a vital part of a financial plan. These policies can help protect financial assets for both your own benefit as well as the benefit of your heirs.
Working with an advisor to develop a plan that considers long-term care risks is an important piece of every good financial plan.