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May 26, 2022

When planning for retirement, we hear a lot about managing risk in our portfolios. On today’s episode, we are going to approach risk in a different light. How prepared are you for the risk of needing long-term care to cope with a chronic or lifelong condition? This is the least favorite topic of many pre-retirees and retirees because most of us want to plan for the fun things: vacations, hobbies, family legacy, etc. Yet, this is one of the most important components of a healthy retirement plan.

7 out of 10 people will need some type of care in their life. Despite this statistic, many people ignore this issue or assume family will be able to take care of them.

While this is a great sentiment, it doesn’t always work out this way. If you end up needing assistance, where will these funds come from? Preparing for this possibility protects us from the immense price of long-term care.

There are several solutions to this problem. Long-term care insurance isn’t offered as much as it used to be, but it is still an option for many people. You’ll need to decide on a type of benefit and how long you assume you’ll need coverage. While we hope we’ll never need this insurance, it’s very beneficial to have coverage if something were to happen.

Sometimes people assume long-term care costs are covered by Medicare. Medicare does not pay for long-term care, they pay for hospitals, doctors, and parts of rehabilitation. If you still need care after a medical event, the issue is considered chronic and the costs for care are up to you. When long-term care insurance payouts start is up to you and the policy you pick. You need to be considered legally chronically ill in order for these policies to pay.

Join us today as we break down some of the basics of long-term care planning and how you can reduce the risk this issue may pose to your retirement.

Check out the full episode or use the timestamps below to hear a specific segment.

1:22 – Today’s topic

2:07 – Do you have a plan for long-term care?

4:00 – Where will these funds come from?

4:54 – Long term care discussed in the workplace

5:49 - Long term care insurance options

9:49 - A client story on long term care insurance

11:38 – Does Medicare cover long-term care?

13:45 – When does insurance start to pay?

16:05 – Receiving long term care in home

19:02 – We can get ourselves prepared


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