Long-Term Care Planning: Why Starting Early Matters

You might feel that long-term care planning doesn’t apply to you right now, especially if you’re healthy, active and years away from needing support. Many people in their 40s and 50s feel the same, which is why long-term care planning often gets pushed back “later”, but the truth is early planning can have a real impact on your total cost, eligibility, and flexibility.

There are 3 frequent situations faced which show that getting a head start on long-term care planning can pay off:

1. “I got coverage when I was younger… and I’m glad I did”

Early planning often means more flexibility, and potentially lower lifetime costs for coverage. Starting while you’re younger, and often healthier can allow for

• Lower premiums relative to starting later in life
• The possibility of finishing paying premiums before retirement, depending on the plan
• The potential to return premiums to beneficiaries if you never need to use the coverage

2. “I wish I had started earlier because premiums are higher now”

Waiting 5, 10 or 15 years before looking into care options and starting a policy may delay expenses, but it can also result in higher premiums due to changes in age and health. Even with the potential to save money by avoiding premiums in earlier years, there’s a chance the total lifetime costs still exceed what could have been with an earlier start.

3. “I wish I had gotten covered earlier…now my health is making it difficult”

Heath is one of the biggest factors determining long-term care insurance eligibility. Even if you’re financially prepared to pay a higher premium, it can become challenging to get approved for certain types of coverage.

Regardless of the situation, the theme holds that the earlier the conversation on long-term care options, the better options available at a lower cost.

Is it too late to start planning in your 60s or 70s?

No. It’s never too late to develop a plan for long-term care. While there may not be as many options available compared to when you were younger, understanding what choices can still be made, and how to communicate those preferences is important should the need for care arise.

That plan could include

• Support from loved ones: friends and family play an important role, and may be able to assist
• Government programs: depending on your situation, Medicare, Medicaid, or Veterans’ benefits may be available
• Transferring risk to an insurance company: it may not be too late to get coverage, especially with there being more options available today than ever before

If you’re looking for more guidance on organizing your care preferences and the costs associated, you can learn more here: How to plan for long-term care: Costs & financial planning | Ameriprise Financial - OakHeart Financial Group | Ameriprise Financial

Understanding Health Care Costs in Retirement

Long-term care is only one part of broader health-related expenses, and it’s important to consider all the details that could play a part in your retirement plan. Click Managing health care costs: How to plan for health care costs | Ameriprise Financial - OakHeart Financial Group | Ameriprise Financialfor a more comprehensive article on managing health care costs and how to plan for them in retirement.

Our team here at OakHeart Financial Group understands the importance of expert education around retirement planning, especially relating to health care costs. We frequently host webinars surrounding these topics, which are free to attend and can be found here: Financial seminars and events - OakHeart Financial Group | Ameriprise Financial.

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We work with our clients through their unique situations to feel more confident, connected and in control of their financial lives from our offices in Palm Springs, California and Charlottesville, Virginia with virtual options as well.