Planning for retirement is a journey filled with choices and decisions. One of the most significant decisions you’ll make is how to ensure your long-term care needs are met. While some may hope for the best and rely on a “wild card” for retirement, this approach can be risky and place a tremendous burden on loved ones. Long-Term Care Insurance (LTC) can stack the deck in your favor, offering peace of mind, asset protection, and control over your future.

Relieving the Burden on Loved Ones

Long-term care needs can be a significant financial burden on families. In 2020, the average annual out-of-pocket expense for family caregivers reached $7,242. This places strain on the finances of those providing care and their ability to save for their own future. 80% of family caregivers are spending at least 26% of their savings on their loved one’s expenses. Additionally, the average number of hours family members spend as caregivers is 24.4 per week, and 1 in 4 devote 41 or more hours weekly to caregiving. LTC insurance can ease this burden, providing financial support and relieving family caregivers of this responsibility.

Asset Protection

Protecting your assets during retirement is crucial for securing your financial well-being. Long-term care insurance safeguards your savings and investments by covering the costs of necessary care. Without this protection, the high costs of long-term care can deplete your assets rapidly, leaving you financially vulnerable. With LTC coverage, you can enjoy your retirement without fearing that your hard-earned savings will be exhausted by healthcare expenses.

Aging Alone Safely

For many individuals, the desire to age alone in the comfort of their own home is paramount. LTC insurance helps make this a reality by providing the financial means to receive care in your preferred environment. Whether it’s in-home care, adult day care, or assisted living, you can maintain your independence while ensuring you have the support you need.

Avoiding Nursing Homes

Nursing homes can be a viable option for some, but most people prefer to avoid them if possible. With LTC insurance, you have the flexibility to choose the type of care you receive and where you receive it. This enables you to steer clear of nursing homes and access the level of care that suits your unique needs.

  • 1.4 MILLION people are living in nursing homes
  • Nearly 43% of people residing in nursing homes are aged 65 to 84
  • Over 3 in 5 have cognitive impairment (Alzheimer’s, stroke)

Controlling Your Care

Maintaining control over your care is essential for ensuring your individual preferences and needs are met. According to statistics, 66% of caregivers monitor and adjust the recipient’s care, and 63% communicate with professionals on behalf of the recipient. LTC insurance allows you to remain in control, making decisions about your care and coordinating with professionals as necessary. This level of autonomy is invaluable as you age.

Relieving the Emotional and Physical Stress

Caring for a loved one can be emotionally and physically taxing. It can also be logistically challenging, with 50% of caregivers acting as advocates across medical and community contexts. LTC insurance helps alleviate this stress by providing trained professionals who can offer the care and support needed, giving family caregivers much-needed respite.

The Bottom Line

Relying on a “wild card” for retirement is a risky strategy, especially when it comes to addressing long-term care needs. Long-term care coverage is a proactive measure that can not only relieve the financial burden on family members but can also protect your assets, enable you to age alone safely, allow you to avoid nursing homes, and give you control over your care. By making this wise investment, you can safeguard your life peace of mind in retirement, knowing that your long-term needs are covered.

Your retirement is far too important to leave to chance – stack the deck in your favor with LTC insurance.

 

 

Important Disclosures:

This material contains only general descriptions and is not a solicitation to sell any insurance product or security, not is it intended as any financial or tax advice. For information abut specific insurance needs or situations, contact your insurance agent. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims-paying ability of the issuing company. Securities are offered through LPL Financial, member FINRA/SIPC. Investment advice offered through InVestra, a registered investment advisor and separate entity from LPL Financial. LPL Financial and InVestra Financial Services do not offer tax or legal services.

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