If you're in the process of creating an estate plan or simply thinking about the future, it won't be long before matters associated with long-term care move to the top of your mind.
It's your hope that you never require long-term care as you age, but you can't assume this will hold true. And that's why you need to implement a comprehensive long-term care plan.
While there are many questions to answer, here's one of the most important: How will you pay for long-term care should it be necessary in the future?
This differs from one person to the next, but here are five of the most common ways to pay for long-term care:
- Personal savings: It's not the best option, as no one wants to spend their savings on long-term care, but it may suit your situation. If you have money in the bank, it can help pay for all types of long-term care.
- Long-term care insurance: If you purchase a policy when you're young and healthy, you can secure coverage at an affordable price. Should you need long-term care in the future, your policy will then kick in to pay for some or all of your expenses.
- Medicaid: While Medicare only pays for some types of long-term care for a short period of time, Medicaid is designed to provide more expansive coverage. If you qualify for Medicaid, it's often the best way to pay for care.
- Veteran's benefits: If you served the country in the past, you may be eligible for veteran's benefits. There are many programs in place to help you.
- Reverse mortgage: This allows you to convert some or all of the equity in your home into cash you can use to pay for care.
There's nothing simple about planning for long-term care, but it's an important part of your estate plan. Once you have this detail figured out, you'll feel better about anything the future can throw your way.
With so many options to consider and roadblocks standing in your way, it's important to tackle long-term care planning as soon as possible.
Visit our website for additional guidance pertaining to long-term care and other elder law matters.