Long term care (LTC) provides assistance for those who need help
performing functions essential to daily living. These include basic
functions like eating or dressing yourself.
Who needs it? This assistance is needed after physical or cognitive loss,
a disease, an accident, or loss that occurs naturally as we age. The
probability of needing this type of support increases with age.
Who Provides this care? If still living at home then the care is most
often provided by either family members or in-home care professionals.
At some point either by your choice or out of necessity you may have to
transition to an “assisted living community” and/or “a nursing home”.
Robotic tools are also able to provide some assistance for daily living
Who Pays for it? Costs for LTC are most often paid out of family or
personal assets. Medicare does not cover long term care. Medicaid
(Welfare) provides some limited coverage to low income families. In
your retirement plan we need to include how you’ll cover long term care
expenses. Most often out of your assets or through insurance coverage.
LTC insurance needs to be seriously considered by age 50 since it may
become prohibitively expensive by the time you’re ready to retire. LTC
insurance premiums may be tax-deductible.
How much does it cost? That will depend on how much care is needed,
whether it’s provided at home or in a dedicated community, and the cost
of living in your retirement area.
Your retirement plan should include how you’ll cover potential long
term care expenses – either out of assets or through insurance. We’ll
need to determine which method and amounts are right for you.
Edi Alvarez, CFP®
BS, BEd, MS