Long-term care refers to the services needed to help you if a chronic illness or disability prevents you from living independently or performing daily personal activities such as getting dressed, taking medication, or preparing meals.
Although you might not require these services until later in life, it is wise to plan well in advance. Developing a strategy to pay for long-term care after you already need it can be stressful and limit your options. Here are a few key considerations to keep in mind as you develop a long-term care plan:
1. Understand the different levels of care and their costs
Aging in place
Most often this term means receiving services in your home, which can include care provided by visiting nurses, home health care workers, family, and friends.
It can also refer to living in a continuing care retirement community (CCRC), which offers facilities with varying levels of care. In a CCRC, you start in a residence suited to your current condition and transition to higher levels of care within the same community as your needs evolve.
The benefit of CCRCs is that they provide a seamless transition through different stages of care, helping ensure you won’t need to search for a new facility each time your care requirements change.
Assisted living
Assisted living facilities provide staff to help with daily activities such as bathing, dressing, and managing medications. Choosing assisted living can also add a layer of security, knowing that assistance is readily available in case of falls or health emergencies.
Skilled nursing and memory care
Skilled nursing care is provided in residential facilities (often referred to as nursing homes) that include on-site medical services. These facilities offer short-term rehabilitation service after hospital stays and 24-hour care for residents requiring extensive assistance and supervision.
Some facilities also have specialized memory care units for individuals with cognitive challenges, such as Alzheimer’s disease, who require higher levels of supervision and care. As expected, the cost of care increases with the complexity and intensity of the services provided.
2. Communicate your preferences to your loved ones
Clearly communicating your wishes to your loved ones can be essential so they can understand and respect your preferences. While you may assume your adult children will take care of you if the need arises, this should be confirmed through open and honest conversations. Discuss your expectations and theirs to help ensure alignment. Consider working together to create an actionable plan that helps meet your needs and considers their ability to provide support.
3. Explore your financial options for long-term care
Paying for long-term care can be complex as health insurance and government programs like Medicare and Medicaid often have restrictions and limitations. To help cover the costs of care, you may need to consider additional strategies, such as:
- Relying on family members
- Paying out of pocket
- Purchasing long-term care insurance
It’s often essential to review these options with qualified legal and financial advisors to help determine the best approach for your situation. Proper planning can help ensure you receive the care you need without unnecessary financial strain.
Proactively preparing for long-term care helps you make informed choices, ease the burden on loved ones, and ensure your future care aligns with your preferences and needs.
Insurance products are offered through nonbank insurance agency affiliates of Wells Fargo & Company and are underwritten by unaffiliated insurance companies.
Wells Fargo & Company and its affiliates do not provide tax or legal advice. This communication cannot be relied upon to avoid tax penalties. Please consult your tax and legal advisors to determine how this information may apply to your own situation. Whether any planned tax result is realized by you depends on the specific facts of your own situation at the time your tax return is filed.
This article was written by Wells Fargo Advisors and provided courtesy of Michael Pett, Senior Financial Advisor, Managing Director – Investments in Succasunna and Joseph F. Bruno, Senior Financial Advisor, Managing Director – Investments in Sparta at 973-252-4706 and 973-512-7436.
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