It’s never too late to plan for the possibility that you will need long-term care post-retirement. Medicare helps pay for long-term care hospitals, some home health services, care in a skilled nursing facility, and hospice services. However, it does not cover the costs of long-term care. To prepare for this possibility, some people choose to invest in long-term care insurance. There are plenty of other options, though, when it comes to planning for your future. 

What Is the Likelihood You Will Need Long-Term Care? 

There is a 70% chance a person turning 65 will eventually need long-term care to help with daily life. One in five American seniors will need such assistance for less than one year, while one in seven will need them for five years or more. Your odds of needing custodial care go up if there is a family history of certain illnesses and conditions that could impact your health such as Parkinson’s or breast cancer. 

How Can You Reduce Your Risk of Needing Long-Term Care?

Making healthy lifestyle choices can reduce your risk of needing extensive care in the future. These choices include eating a healthy diet and getting daily exercise. If you’re over the age of 65, consider enrolling in a Medicare Advantage plan like Anthem from Blue Shield. Not only do these plans cover dental, vision care, and prescription drugs, but many plans give enrollees access to health and wellness programs. 

Making certain modifications around the house can enable aging in place. Not only do accessibility renovations make living at home more comfortable for seniors, but it also keeps them safe and healthy by reducing their risk of falling — a leading cause of serious injury in seniors that can severely impact health and quality of life. 

How Can You Pay for Long-Term Care? 

Many seniors rely on family for long-term care needs, but you may not like the idea of putting that burden on their loved ones. Making a savings plan today ensures that you get the care you need and want without stressing your family’s resources. 

The further you are from retirement, the more options you have when it comes to your long-term care savings. Not only do you have more time to squirrel away funds, but if you decide to invest in long-term care insurance, it will be considerably more affordable if you are young, healthy, and participating in the workforce. With that being said, long-term care insurance premiums are rising, and it’s always a good idea to diversify when it comes to your finances. Looking into savings accounts and other options in addition to long-term care insurance can add security not only to your health, but also to your finances.  

• Self-insuring is simple, but not everyone can feasibly put aside as much as $130,000 while also saving for retirement. However, opening a new high yield savings account and making regular deposits in preparation for long-term care needs can be a useful safety net in addition to an insurance plan.
  
• Some life insurance policies allow holders to add long-term care riders that can be accessed when custodial care is needed. Those with life insurance can also opt to settle a policy for a cash sum that can be used to pay for long-term care.
  
• A health savings account (HSA) is a tax-free way to save for future medical costs. You can use the funds for any qualifying service including long-term care. The money can also be withdrawn and used for non-health related purposes, but funds are then subject to taxation.
  

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Most seniors will need some type of long-term care, so all adults should come up with a plan to pay for it. Long-term care insurance covers costs Medicare will not, but it’s always a good idea to have a diversified financial plan. Look into options including a combination of life and long-term care insurance, a Health Savings Account, or even self-insuring as a way to have consistent access to your cash and prepare you for the future.

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