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Protect Your Future: The Importance of Long-Term Care Planning

One of the largest expenses that seniors may face in their retirement is one that many fail to plan for. Long-term care, or LTC, is a category that relates to care in the event of significant illness or decline, such as Alzheimer’s, disability or other life-changing health events. As we get older, our chances of needing LTC increases dramatically – but it doesn’t mean that a senior will necessarily need this type of care.

“Expenses for long-term care can be quite significant, even upwards of a million dollars,” says Erica Labb, Executive Director of Bridges®  by EPOCH at Westford. “For seniors who haven’t made a financial plan for long-term care expenses, a significant event could completely derail or deplete an otherwise well-funded retirement plan.” As our life expectancy goes up, she says, so does our chance of requiring long-term care, which means that a successful retirement strategy requires planning for this specific need.

“The problem today is that many people don’t think about this type of care until they or a loved one need it,” Erica says. “That’s why it’s so important to educate yourself on your options, understand what this type of care involves and make plans for the future.”

What is long-term care?

Long-term care is generally defined as providing assistance with ADLs – that is, normal activities of daily living such as bathing, grooming, mobility and such – for more than 100 days. If the individual requires assistance for less than 100 days, this does not fall under the definition of long-term care. It’s estimated that at least 70 percent of seniors today will require some form of long-term care, as well as shorter-term care.

Many people erroneously believe that long-term care can be paid for by insurance, which can explain why so few people make long-term care planning a part of their retirement planning. Unfortunately, neither Medicare nor traditional healthcare plans pay for long-term care. The only insurance that covers this type of care is the aptly named long-term care insurance, whose premiums can become very expensive.

What happens if I or a loved one need long-term care but haven’t planned for it?

What often happens is that the care is self-funded by the senior and their spouse until all their assets are depleted. At that time, the person needing care can qualify for Medicaid, which can cover long-term care. However, as you may expect, this situation is far from optimal. It’s far better to integrate long-term care planning into your retirement plans – the sooner, the better.

Should I purchase long-term care insurance for myself or a loved one?

This isn’t a simple yes or no answer. The best information we can give is to look into the options that are available to you. Long-term care insurance is definitely an option, but whether or not it makes sense for you will depend on your age, your current health, your financial situation and other factors. Generally, experts suggest that individuals purchase a long-term care insurance plan by the time they’re in their mid-50s in order to get the lowest premiums possible. However, if you’re in your 60s, that doesn’t mean this form of insurance isn’t right for you. The best thing is to connect with your financial advisor and discuss options.

How do I know what types of long-term care are available to me?

Long-term care is a blanket term that encompasses a wide variety of services. What you or a loved one may need from long-term care could be completely different from another person. That’s why it’s smart to study the different types of options that are available and which might be beneficial to you – and what’s available in your area. Here are just a few examples of the types of long-term care that’s out there:

  • Assisted living or independent living in a senior community
  • Adult day care
  • Home health services
  • Hospice services

Your local Area Agency on Aging is an excellent resource to see what’s available in your area. Other sites are the state affiliates of the National Center for Assisted Living and the federal government’s databases of home health agencies or skilled nursing centers. Or you can do your own sleuthing through internet search engines and asking trusted advisors.

What do I need to think about besides the financial aspect?

Knowing how to finance long-term care is essential, but it’s not the only aspect you need to think about. More than 25 percent of seniors who need long-term care are not capable to make their own decisions when the time comes. Having an advance directive and powers of attorney in place will help ensure your or your loved one’s wishes are followed. You should also make sure that key family members or representatives understand your wishes so they know what to do in the event that you or a loved one are incapable of making decisions.

Should I plan for long-term care in my home or in a community?

Many people wish to remain in their home for as long as possible and receive any form of care there. However, home may not always be the best place for those who require long-term care. Depending on the individual’s health situation, the home might require a variety of costly and disruptive renovations. The home may be isolated, which can be dangerous if an emergency occurs. Individual homes also require a lot of work and upkeep, which can become expensive and a real pain to manage. In a community, however, individuals have everything they need to live safely and are surrounded at all times by caring, professional staff. Seniors also have the benefit of being in a social environment filled with activities and opportunities to enjoy life without having to worry about chores or other responsibilities.

Facing the reality of long-term care can be hard. But by preparing for it before it’s needed, you’ll achieve peace of mind for you and your loved ones. That way, if and when the need arises, you can relax, knowing you’ve done everything you can to make the next steps as smooth as possible.

Comprehensive Services

At Bridges® by EPOCH at Westford, we know no two residents are alike. That’s why we’ve designed our services to address the distinct challenges each resident faces. With comfort, safety and happiness as our top priorities, residents receive unmatched personalized attention, no matter the stage of memory loss.

Community Amenities

Bridges® by EPOCH at Westford features a beautiful residential design. Every inch has been thoughtfully designed to enhance the lives of those with memory loss. Soft colors, directional cues, aromatherapy and interactive life stations are placed throughout the community to create a peaceful and secure environment so residents may enjoy great comfort, familiarity and security.

Contact us today to learn more. 

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