When you think about your long-term health and safety, long-term care planning should be something you start working on. Long-term care might be tough to think about, but planning appropriately can help you safeguard your retirement and assets while still getting the medical care that you need.
Long-term care planning needs to take place over time, but many people turn to it only in a crisis. Did you know that around 70% of people who are turning 65 today can expect to use long-term care support at least at some point in their lives? Not taking the time to plan early can expose you to risks you don’t want to take.
One thing that is changing about long-term care planning is the new kinds of plans being offered. Hybrid plans, which can be used for long-term care costs or death benefits make some consumers happier, because if they don’t use the benefits, they will later pay out to their beneficiaries. This kind of plan might be more expensive, but you get the guarantee that either you or your beneficiaries will be able to receive the benefits.
Another option is the asset-based long-term care plan, which uses a 1035 or rollover exchange to create an asset-based LTC policy. With this, you can have two plans: one for long-term care and one for death benefits, which are rolled into a single policy. Unlike the above hybrid plans, you can only access the maximum for death or LTC benefits separately when they’re needed. So, if you don’t need LTC, you won’t use those benefits.
Long-term care planning can be complex. If you have questions, you may want to talk to your attorney about what they’ve seen work for others.