The Bird’s Eye View:
Today, we’re talking nuts and bolts of financial planning and long-term care solutions. Not many people like to discuss this topic, but it’s important to be prepared.
On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re exploring long-term health care. What is it and what are your options?
There are three main categories of long-term care, but first let’s discuss what it is. It could be someone who is sick, goes to a rehab hospital and goes home. You may have people coming into your home part time or full time. Assisted living and nursing homes are also long-term care.
To quantify the costs, you have to look at the levels of care that are offered. It’s less expensive to have someone come into your home for a few hours, but it’s more expensive to live in a private nursing home with a private room. That can be six figures a year in some places.
We have software that can help calculate your costs based on what you might need.
It’s uncommon in society that people have the resources to self-fund long-term care. It’s more common with families that we serve, because they have been great savers. They have financial resources that can help them weather that storm.
People often go through these things with their parents, and they don’t want their children to shoulder the same burden.
Traditional long-term care insurance has decreased in popularity over the years, partly because premiums have increased. Most of our clients don’t have it, or if they do, they got it before they came to us.
Hybrid solutions are where things are headed. You use other types of insurance products, such as annuity or life insurance strategies. Another option is a life insurance retirement plan.
Listen to the full episode or use the timestamps below to find specific segments.
3:55 – What is long-term care?
8:20 – Self-insure?
10:43 – Traditional insurance and hybrids
16:13 – Life insurance retirement plan
19:23 – Recap
Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.
Scott Dougan, RFC, Investment Advisor – Contact