Long-term care options are available for Colorado Medical Society members. Enrollment is open now

Quick summary: Seventy percent of individuals 65 and older will need long-term care. The best time to prepare financially for your own long-term care is now. Why? Because your health insurance does not cover long-term care nor does Medicare. 

Long-term care planning is an important consideration for individuals of all ages. Preparing for the possibility of a future in which self-care may not be feasible is challenging; however, statistics indicate that 70% of individuals aged 65 and above will require some form of long-term care. Furthermore, unexpected accidents or illnesses can result in impairment at any age.

Unfortunately, many people wait until it’s too late to start planning. As life expectancy continues to grow because of medical and technological advancements, more and more people should start planning now for an unexpected chronic illness or disability or simply growing older. 

What is the likelihood of needing long-term care? 

The chances that you’ll need long-term care services are high, but how do they stack up against other unexpected life events? 

• Fire damaging your home: 1 out of 3,000 (.03%) 
• Automobile accidents: 1 out of 63 (1.6%) 
• Being called down on “The Price Is Right”: 1 out of 36 (2.8%) 
• 20-year-olds who will suffer short term disability before they retire: 1 out of 4 (25%) 
• Needing long-term care assistance in your lifetime: 1 out of 2 (50%) 

Anyone can experience the need for long-term care, no matter how old they are or what their health is like. Being prepared for the possibility that you may need long-term care services at some point in your life is an important step to take. Why? Because long-term care is not covered by Medicare or health insurance.

Common signs you may be at risk of needing long-term care 

Many people mistakenly believe that only older adults need long-term care. While the need for long-term care can arise at any age, certain risk factors may make it more likely that someone will require this type of care: 

• Family history. If your parents or grandparents needed long-term care, you may be more likely to need it as well.
• Age and gender. Women tend to live longer than men, and the older you get, the greater your odds of needing long-term care.
• Lifestyle choices. Poor lifestyle choices can raise your risk for several chronic conditions, and severe chronic conditions increase your chances of needing long-term care.

By knowing the factors that increase your risk, you can make informed decisions about your health and plan for the future accordingly. 

Case study: Lessening the burden of an Alzheimer’s diagnosis  

George and Ida purchased a long-term care insurance policy with inflation protection years ago, when they were younger and healthier. Because they planned when they were still healthy, they were able to qualify for meaningful coverage at a rate they could afford over the long term. That decision gave them access to a greater pool of benefit dollars than if they had tried to self-fund their care. 

Now in their early 70s, George and Ida are experiencing the effects of a devastating diagnosis: George has Alzheimer’s disease. 

When George was first diagnosed, Ida and family members were prepared to coordinate their schedules to help him. As his condition progressed, Ida found it increasingly difficult to manage her husband’s needs — even with the help of their adult children. The decision years ago to purchase long-term care insurance provided enormous relief once it became clear that George needed the help of home health aides. 

The benefit dollars will have a significant impact on Ida and George’s overall retirement savings. When they started initial planning, the annual cost for an assisted living facility was $20,000. Now, the average cost for that same facility is nearly $64,000 per year, but George’s cognitive care will cost more. Plus, the cost is projected to grow at approximately 5% per year. 

A long-term care insurance plan brought this couple and their family tremendous peace of mind at a sensitive time. Ida is especially grateful for the burden it takes off their adult children. Planning for care well before you need it can have a profound impact on overall cost, your care options and your family’s freedom from worry. 

How do you plan for long-term care? 

The best time to plan for long-term care is long before you need it. That way, you’re more likely to have choices about how and where you receive care and how you will pay for that care.  Remember, there is no magic funding solution. You either pay out of pocket or purchase a level of coverage that will help you cover some or all of the cost.

Here are things to consider to guide your planning: 

• Location. Will your current location be able to meet your changing demands as you age? Think about what type of care you might need and where you would like to receive it. Home care and community-based services can help you stay in your own home, while nursing home care can provide a more structured environment. Also, assisted living facilities and continuing care retirement communities offer a range of services, from independent living to skilled nursing care. 
• Lifestyle. Since the lifestyle choices you make now can have a major impact on your long-term health and wellbeing, you might consider your current lifestyle through a future lens. Are you willing to make any changes now to reduce the risk of illness or impairment? If not, what extra preparations do you need to make to compensate for future needs and expenses? 
• Costs. Understand what the cost of care is in your area and find funding solutions to cover those costs. Additionally, you can calculate your long-term care insurance costs versus the benefit and see the leverage that insurance can provide.
• Establishing clear legal instructions and appointing a financial power of attorney are crucial steps in any long-term care plan. These measures ensure that your wishes regarding medical treatment, living arrangements, and financial matters are respected even if you become unable to communicate or make decisions on your own. By putting these legal safeguards in place, you protect yourself and your loved ones from potential conflicts, delays, and uncertainty, allowing your chosen representative to act swiftly and confidently on your behalf. Ultimately, this preparation offers peace of mind knowing that your care and assets are managed according to your preferences, no matter what the future holds.  

Protect your future today 

The Colorado Medical Society, in partnership with Copic Financial, has worked with BuddyIns to develop this special offer: long-term care with life insurance benefit. Maximize your employee/member benefits by setting up your policy during long-term care enrollment, available on a rolling monthly basis. Purchase coverage during an enrollment period with guaranteed approval and affordable premiums. This is a policy that you can keep for the rest of your life and use anywhere in the U.S.

Here’s what you can do now: 

• Enroll in a long-term care with life insurance benefit
• Build your benefit with a customized calculator 
• Get answers through the FAQ 

Having a long-term care plan, including a funding solution like the above benefit offer, before your family needs it, will ensure that your wishes are carried out. A plan that includes a long-term care plus life insurance benefit can provide you and your family with more care options when that time comes.