Don’t wait until the tables turn and your children eventually become your caretakers. So how can you plan ahead and ensure this doesn’t happen to you and your family? Consider long-term care coverage.
When you think about the foreseeable future, getting injured or falling ill is often not something that you consider happening to you. But as we know, life doesn’t always go in the direction we expect, so planning for these scenarios with the help of an affordable financial advisor in Newark or San Ramon can potentially help to foster a more stress-free and successful financial future.
Because you’ve worked hard to be successful, you want to protect your efforts for the “just in case” scenarios that might occur as you age. Long-term care planning is a smart strategy for millennials and Gen Xers who are looking to protect themselves against significant health care costs later in life. And the earlier you plan, the better off you will be in the long run.
Sadly, many people believe that long-term care coverage is only for the elderly, so they don’t capitalize on the opportunity to obtain this coverage when they are younger. When you work with a qualified financial planner, they can assist you in determining when you should purchase long-term care coverage.
Plan for the future…today. Consider adding long-term coverage to your overall financial plan.
A younger perspective on long-term care
According to a new study of Americans age 18 and older by The Associated Press-NORC Center for Public Affairs Research:
- By age 40, 1/3 of U.S. citizens are already long-term caregivers for someone they love
- 1/3 anticipate becoming caregivers within the next five years
- While younger adults are just as likely as those age 40 and older to expect to become a caregiver soon, they feel much less prepped for the job
- Adults 18 – 39 are skeptical of the longevity of social safety net programs
- Only 1 out of 10 feel confident that Social Security, Medicaid, and Medicare will maintain their benefit levels come time program usage
This article will help you understand the value of working long-term care coverage into your financial planning strategy now versus later.
Why Gen X and Gen Y should consider buying long-term care coverage
Even though your perspective may have been that long-term care is expensive for coverage that you may not need for some time, consider these points:
- There are different policies to meet different financial needs.
- Long-term care insurance can protect your assets, family, and overall mental health.
- Long-term health conditions are often expensive to treat over time, even if they’re managed with medication or other treatments.
- The cost of additional healthcare expenses could affect your ability to pay bills and remain independent in the future.
- Long-term care insurance can help you or a loved one to continue living comfortably without the worry of going into debt due to medical bills (or losing their home).
- The price of this type of coverage rises with time and age, so affordability might be greater now that your income is higher and retirement funds are growing faster as opposed to entering retirement.
Does your family understand the benefits of long-term care?
As the baby boomer generation ages (your parents or grandparents), the need for long-term care is expected to increase significantly. According to a 2021 Cost of Care Survey, a private room in a nursing home in California costs $297 daily or $9,034 monthly.
However, many people don’t realize that long-term care doesn’t just include nursing homes. That’s why it’s important to have a plan in place, so your family doesn’t have to make these decisions on your behalf if you’re no longer able to do so for yourself.
There are several factors that can affect your premiums, including where you live, your age, and your health. To find out more, talk with us at Humanity Wealth Advisors.
When the oldest baby boomers turn 80 in 2025, a growing wave of people will need more services and support. This means that the burden will be heaviest for their children.
Technological advances and public health are lengthening life spans, and we don’t yet have a long-term care system to maintain this.
As estimated by The Center for Retirement Research at Boston College, about 25% will have the type of severe needs that most people dread, and about 55% of Americans will have low to moderate LTC needs.
Have you discussed protecting generational wealth with your family?
In today’s modern age, with our eyes glued to devices and less conversation around the dinner table being had, the talk of planning anything as a family may feel like an activity of the past. However, discussing important matters should be made a priority, especially when it comes to protecting generational wealth.
Because the cost of healthcare has become exponentially more expensive, it can be in your whole family’s best interest to have this talk. In fact, U.S. health spending is projected to grow at an average annual rate of 5.4% from 2019 – 2028, reaching $6.2 trillion by 2028.
Does your family have a plan to protect your estate?
If your family has not yet designated a plan of action to protect your assets, consider working with an affordable financial advisor in San Ramon and Newark. They should be able to provide you with estate planning services that will ensure that your assets will be transitioned correctly to your family when you pass or are not able to handle your finances.
No matter what stage of life you find yourself in, another tactic to consider is subscription-based financial planning for those times when you need help with a specific issue or focus on a particular part of your personal finances. This is a very affordable way to ensure that you are getting advice for a fee from a qualified financial planner.
At $50 per month, the Humanity Wealth Advisors financial planning subscription model is a great way to get started with your financial planning journey. We believe this is an essential part of comprehensive financial planning for millennials and Gen Xers.
To learn how long-term care coverage can benefit your family, call us today or schedule an appointment!