By now you’re used to hearing me talk about planning ahead for long term care expenses. One way to protect your assets and family from a long term care event is to get long term care insurance. This is important when you realize that 70% of single people are impoverished within a year of entering a nursing home. And that 50% of couples are impoverished within a year that one spouse enters a nursing home.
The first thing to do is save money. Your long term care policy will probably have a waiting period. During this time you’ll need cash to pay your expenses before the policy will kick in. The more savings you have, the longer a waiting period you can safely choose on your policy. This will lower your premiums on the policy, which will also allow you to save even more money.
Having an emergency fund to weather out the bad times is always a good idea. If you have trouble saving money, visit Dave Ramsey’s site for additional help.
Another step you can take to protect yourself is to stay in the work force longer. This will keep you active, which should keep you mentally sharper. Also, you will be a productive member of society, and will have a reason to wake up in the morning. Having a purpose in life will keep you healthier.
But if you do retire early, it's a good idea to keep active with something. Hobbies are good, but I recommend something that focuses on other people. Volunteering for a cause or getting involved in a church ministry are worthwhile goals.
If you stay in the work force longer you will be able to save more money. When you do retire you’ll have additional savings to make your retirement more enjoyable and financially safer.
Finally, get help from your family. It’s good to live near your children or someone that is willing to take care of you should you need it. Having your children around will help supplement the professional services that your long term care policy pays for.
If your kids want to support you completely, one strategy they could take is to pay for your long term care insurance premiums. You could work it out where you are their dependent. In that case, the premiums they pay for your long term care policy would be tax deductible for them.
Ultimately, you’re looking for a way to protect your assets and receive the most dignified care possible. That’s why you need to determine your game plan now. A qualified insurance agent can help you set up a plan and follow it. This will protect your family and your assets. Make sure your plan includes insurance that will protect you from being impoverished by a long term care event.
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