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M.A. Kluemke and Associates

Long-term care costs, what can you expect?

Long-term care costs, what can you expect?

Many people will require some form of paid care in their lifetime. People often are frightened of long-term care costs, and rightly so.

When we refer to long-term care, we’re generally talking about help with daily tasks such as bathing, eating, or dressing. Many people will rely on support from their spouse, partner, and/or children. However, long-term care may also include skilled care for a debilitating or chronic illness.

Anyone approaching retirement age should consider their potential risks and have a plan to deal with long-term care expenses. The earlier you start planning, the more choice and control you will have. No matter your situation, you should be prepared to pay for long-term care.

Self-insurance is an option, but you must have sufficient income to pay the rising costs of long-term care. You may also have to drastically alter your lifestyle to make up for any shortfall.

Medicaid is a joint federal and state program that covers medical bills for those in need. If you qualify, it may help you pay for your long-term care costs. To qualify, you generally need to have few assets or will need to spend down your assets. State law determines the allowable income and resource limits.

Long-term care insurance enables you to transfer a portion of the economic liability of long-term care to an insurance company in exchange for regular premiums. Long-term care insurance can be used to help pay for skilled care, intermediate care, and custodial care. Comprehensive policies pay for nursing home care along with covering the cost of home care and assisted living. Long-term care insurance can help protect your family from the potentially devastating cost of a long-term disabling medical condition, chronic illness, or cognitive impairment.

Some insurance companies have added long-term care riders to their life insurance contracts, which could be a possible solution. For an additional fee, these riders will provide a benefit to help cover the cost of long-term care.

Whatever your situation, it’s important to discuss your potential needs with a financial advisor. We’re here to help in any way that we can. So, give us a call at 217.679.1043 or email to schedule an appointment.

By Erin Gutzman


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Check the background of this financial professional on FINRA's BrokerCheck