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Long-term care is the last hole in most portfolios. If you don’t allocate something towards it, you risk allocating everything towards it. Prepare for the high costs of healthcare with our asset protection strategies.

What is Long-Term Care?

Many people equate the term ‘long-term care’ with being in a nursing home. However, there are many different forms of long-term care including assisted living, at-home care, and care in the community such as an adult day care center. Services could include assistance with driving to appointments, making meals, bathing, getting dressed, cleaning, and other daily activities.

70% of people over the age of 65 will need long-term care during their lifetime, so it’s important for everyone to prepare for it. If you have a family history of dementia or Alzheimer’s, planning for long-term care should definitely be a priority for you. However, anyone can need long-term care services anytime due to severe and unexpected chronic illnesses and diseases, injuries, accidents, and after surgical procedures.

Long-term care can be provided by professional medical personnel, but most commonly it is provided at home by unpaid family members and friends. However, it is not wise to assume that a family member will be able to care for you. The type of care you need may go beyond a family member’s abilities, and although your loved one is unpaid, providing the equipment needed for care can still be a significant financial burden in itself.


How to Pay for Long-Term Care

The thought of someday becoming dependent on others is a scary thought. However, learning about how you can prepare for long-term care situations can ease some of your own fears and worries, as well as your family’s.

Don’t plan on your health or disability insurance covering long-term care. Many health insurance plans, including Medicare, will only pay for acute care such as doctor’s visits, medications, and short-term hospital stays relating to illness or injury.

  • Long-Term Care Insurance is one of the most effective and reliable options for paying for daily personal and custodial care. At Advocate Wealth Solutions, we do our homework on insurance products before offering them to our clients. We analyze the rating, assets, discounts and tax considerations of each insurance plan.
  • Hybrid Policies can couple long-term care insurance with your life insurance policy. This option can provide health coverage over and above your death benefit. Any money used for long-term care insurance will reduce your death benefit first.
  • IRA-Based Annuities can supplement your retirement income and cover long-term care.
  • A health savings account (HAS) can offer tax benefits while being used to cover long-term care costs.
  • A reverse mortgage is a loan available to homeowners 62 or older that have considerable home equity. They have become one of the most popular and accepted ways to pay for many different high-ticket expenses, including the cost of long-term care. The homeowner can borrow against the value of their home, and the loan balance becomes due and payable when the borrower dies, moves away permanently, or sells the home.
  • Veteran’s benefits can also help pay for long-term care in some cases. The VA office offers a special pension with the Aid and Attendance Benefit. The benefit is not dependent upon service-related injuries.

Prepare for Long-Term Care with Our Age with Confidence Process

A long-term care analysis is a key part of our Age with Confidence process. We’ll help you gain a true understanding of your current financial situation and the potential impact of long-term care on it, present you with a complete range of options to help you reduce the devastating costs of long-term care, and help you develop a plan that is uniquely tailored to your family’s situation.

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