November is recognized as Long-Term Care (LTC) Awareness Month. This annually designated month highlights the importance of understanding and planning for LTC. The goal is to educate Americans about LTC and its costs and to urge them to consider their own future needs and those of their loved ones.

The increasing need for LTC

Why is LTC important? The reason is simple: as our population ages, the need for long-term healthcare services is steadily increasing. LTC costs can be considerable and vary by care type, provider, and region. Without a dedicated strategy, long-term care expenses may impact personal retirement assets over time. In many cases, Medicare, health insurance, or disability insurance does not cover LTC expenses, underscoring the need for LTC planning.

Planning for LTC

Planning for LTC needs is a critical part of comprehensive financial and health planning. Instead, during LTC Awareness Month, individuals are encouraged to start or continue their LTC plan. Planning can involve assessing one’s risk, understanding potential costs, exploring insurance options, and discussing one’s wishes with family members.

Furthermore, here are some key actions to consider when planning for LTC:

  • Assess your risk – Determine how likely you or a family member is to need LTC. Consider family health history, current health, and lifestyle factors.
  • Understand the costs – Research the average cost of long-term care in your area and factor in inflation.
  • Explore LTC insurance – Consider LTC insurance policies to help cover care costs. Compare providers and policy options to find what best fits your needs and budget.
  • Legal and financial planning – Consult with a financial professional or an attorney experienced in elder care issues to help structure assets and legal documents to prepare for potential LTC costs.
  • Discuss your wishes – Talk openly with family members about your care preferences, including the type of care you want and the settings you prefer.

The role of professionals in LTC planning

In addition to personal planning, financial and insurance professionals also play a critical role in LTC planning. They offer guidance to help you make informed decisions and can provide valuable input on LTC insurance and the type of care you might need in the future.

SWG6002715-1026c This information is provided as general information and is not intended to be specific financial, legal, or tax guidance. Before you make any decisions regarding your personal financial situation, you should consult a qualified financial, legal, or tax professional to discuss your individual circumstances and objectives. By responding to this information or reaching out for further guidance, you may be contacted by a licensed insurance agent or financial professional. Long-term care insurance policies and optional riders are subject to health underwriting, age, state availability, and carrier underwriting guidelines. Optional policy riders are available at an additional cost. The source(s) used to prepare this material is/are believed to be true, accurate, and reliable, but is/are not guaranteed.

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