Knowing what long-term care (LTC) involves is crucial for creating the right care plan. LTC refers to services that help with a person’s health or personal care needs for a short or long time. These services help people live independently and safely when they can’t do everyday activities on their own anymore.
However, single individuals may require long-term care (LTC) services more urgently because they may lack support from a partner or immediate family. Planning for long-term care is essential for both financial management and personal well-being. Addressing this need has become more urgent due to the escalating healthcare costs and the growing aging population. Here are six comprehensive steps that single individuals must work through as they plan for LTC.
Step #1- Determine how much you can pay for care
Start by calculating how much you can afford to pay out-of-pocket for long-term care costs in today’s dollars. Consider factors like your income, savings, investments, and other resources. Working with a financial or LTC insurance specialist can help determine the future cost of care, factoring in things such as average yearly LTC insurance rate increases, inflation, etc. They will use software to determine a scenario cost to help guide the LTC roadmap.
Step #2- Decide on the LTC setting
Another point of consideration is the setting where the care may be provided. Depending on your preferences and medical requirements, long-term care can be delivered in various settings, such as home health care, assisted living facilities, adult day care centers, or nursing homes. Understand the costs associated with each type and factor this into your LTC planning.
Step #3- Get LTC insurance policy quotes
Consider purchasing long-term care insurance if your finances can’t cover the total cost. LTC insurance helps cover the cost of care, reduces financial stress, and allows more independence in choosing the type of care. There are numerous LTC insurance carriers, each with their base LTC policy base cost and riders at additional cost. You must compare LTC insurance company ratings, policies, and riders to help you make an informed decision. Reach out to your financial advisor at Trajan Wealth as a resource to help gather this information.
Step #4- Include LTC directives in your estate plan.
An equally important step in devising your long-term care roadmap is having a legal plan in place. This includes designating a healthcare and financial proxy through power of attorney documents. Should you ever become incapacitated, these designations empower someone you trust to make medical and financial decisions regarding your care.
Step #5- Appoint a care coordinator.
Next, care coordination is paramount, particularly for single or divorced individuals with limited immediate family support. Consider appointing a care coordinator to manage your LTC care, health, and social services suitable to your needs. This would also include advance care planning, such as living wills and conversations about end-of-life care.
Step #6- Practice self-care
Last, self-care and preventive health measures should not be underestimated. A healthier lifestyle can delay the need for LTC. Regular exercise, a balanced diet, regular medical check-ups, mental health care, and maintaining social connections could significantly improve one’s quality of life and delay the need for LTC.
In conclusion, preparing for long-term care is a multi-step process that requires careful consideration and planning. The task may seem daunting for single and divorced individuals, but it can be efficiently navigated with the appropriate LTC roadmap. Remember, taking steps today to plan for your future may help provide confidence that your golden years are spent in comfort and dignity.
