The Importance Of Long-Term Care Planning For Entrepreneurs

The Importance Of Long-Term Care Planning For Entrepreneurs

As an entrepreneur, you’re likely doing your best to stay focused to fulfill your dream of growing your brand and building your business in an effort to ultimately achieve financial freedom. Perhaps you’re making a name for yourself in the community and establishing relationships with colleagues and clients who trust you. As an entrepreneur who started from small beginnings myself, I know this is no easy task!

Whether you run an established business or are just getting started as a business owner, it’s never too early to look for ways to potentially enhance the profitability of your business and your personal income by using a financial advisor in Newark or San Ramon. Equally important in the planning process is ensuring that you have a plan in place to address your personal needs should you need it later in life. We’re referring to long-term care planning for entrepreneurs. 

Don’t procrastinate when it comes to matters of preserving your hard-earned assets!

Read our latest guide on long-term care for business owners. Having the right insurance coverage later in life can make a difference for you, your family, as well as for the health of your business.

As a successful entrepreneur, it’s important to consider how your life may change when you are no longer overseeing the operations of running your business, especially if a health issue arises. 

This article will cover how to plan ahead for possible illness or injury so that you and your family members will not be burdened by high long-term care costs. 

  • Who needs long-term care? 
  • Women’s versus men’s needs for long-term care 
  • How long is long-term care? 
  • The importance of protecting your wealth as you age 
  • Thinking forward: preserve your legacy with long-term care coverage

Long-term care planning for entrepreneurs

Your money moves matter!

Long-term care planning should be a component of your financial planning efforts, especially if you’re a business owner or entrepreneur. 

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Did you know that entrepreneurs are among the most likely group to need long-term care in their later years? According to data provided by LIMRA (a nonprofit association that researches and studies the retirement industry), entrepreneurs are at least twice as likely to experience a major life event resulting in long-term care needs than salaried workers. 

This is due in part to the fact that many entrepreneurs work well into their 70s or 80s, while they also tend to be less financially prepared for such expenses than those who received steady paychecks from employers throughout their careers.

The good news is that there are steps you can take with an affordable financial advisor in the Bay Area to help ensure your future financial security if you are in a position where you are no longer able to work due to illness or injury. 

Humanity Wealth Advisors is here to provide you with the guidance for you, and your loved one’s need on the benefits of long-term care coverage, as well as determining what type of coverage is best for your particular situation. There are different types of coverage that include either individual or qualified family members.

Who needs long-term care?

If we assume that the majority of business owners and entrepreneurs run and oversee the day-to-day operations of their businesses, if an unexpected event, such as illness or injury occurs, they are at the most risk of having their absence from daily operations impact the success of their business. This is why it’s so important to obtain long-term care sooner than later. This task is not something you should put off until you are in the midst of a crisis. 

You may need long-term care if:

  • You have a cognitive impairment or physical disability due to illness, injury, or aging.
  • You require unforeseen assistance after a heart attack or stroke, for example.
  • You need an assisted living facility or nursing home.
  • You become homebound due to a chronic medical condition such as diabetes or heart disease that limits your ability to get around safely without assistance from others (even if you do not require 24/7 supervision).

Women’s versus men’s needs for long-term care

Due to advances in healthcare and wellness for women, the average life expectancy for females is 81.1 years old compared to 76.1 years old for men. Since women live longer than men on average—and therefore spend more time in retirement—it makes sense that they would need long-term care services later in life as well.

Research shows that women tend to need care for 3.7 years versus men, who need care on average for 2.2 years. While an average of one-third of 65-year-olds today may never require long-term care, there are 20% will need long-term care for at least five years or longer. 

How long is long-term care?

It’s reported that family caregivers spend more than $7,200 annually on out-of-pocket costs. Long-term care can last months or years, depending on your health and the required level of care. At Humanity Wealth, our job is to help you and your family budget for long-term care expenses so you don’t have to have any unexpected out-of-pocket expenses that are not covered by insurance. 

Even though most long-term care is received in the home, some may require care in a nursing home. This would be incredibly expensive to cover that cost without proper insurance. This is another reason why long-term care coverage should be a part of your wealth management and financial plan. 

The severity of health-related challenges will dictate the length of long-term care required. 

The importance of protecting your wealth as you age 

Wealth preservation and wealth management are vital components of financial independence, which starts with a solid foundation of financial literacy.

When you’re in the prime of life and on top of your game, it can be challenging to think about the future and how things might change as you approach retirement. However, having a few safeguards in place, such as long-term care coverage, can protect your hard-earned saving down the road.

  • Long-term care planning (LTC) protects you and your family from potentially exorbitant costs associated with medical care or assistance in daily activities like dressing or eating following an accident or illness if require care in a skilled nursing facility.
  • Long-term care planning can help safeguard against long-term care expenses by ensuring care costs are covered when expenses occur.

Thinking forward: protect your legacy with long-term care

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As an entrepreneur, you know what it takes to be successful. It makes sense then that in order to protect and preserve your assets, you should work with your San Ramon financial planner to develop a comprehensive financial plan that includes long-term care coverage. No one wants to run out of money during their lifetime, so plan not to! 

Alleviate any unforeseen stress for every family member by taking on the financial responsibility of preserving your wealth. 

Next Steps

Planning for long-term care as an entrepreneur is a crucial component in comprehensive financial planning. By thinking forward, you can create a plan to preserve your legacy by incorporating long-term care coverage into your overall financial plan.

Need a convenient, affordable way to begin? Opt-in for Subscription-Based Financial Planning: The Future of Personal Finance! 

Download our free eBook: A Simplified Retirement Planning Guide!

More about the author: Harry Sherdil

As a fiduciary financial advisor at an independent firm, Harry strives to offer the same resources, tools, and research as bigger firms while serving new and existing clients' best interests.