Most people want to stay in their own homes as they age, but making that a reality requires planning. If you’ve planned for retirement, planning to grow older with financial confidence and control is the next smart step.
That includes preparing for the care you might need someday and knowing who will provide
The following eight questions are designed to help you understand where you stand today and identify gaps that may need attention so that you can better prepare to age your way.it.
1. How much will you need to stay independent?
Care can be costly, with expenses varying by setting, location, and level of care.
Many underestimate these costs or believe they can be easily covered within a retirement budget. Recognizing actual, up-to-date costs is essential for effective planning.
For instance, a home health aide can cost $6,400 or more per month, according to the most recent data from Genworth and CareScout.
You may not need care for a long time, but knowing who will arrange that care and pay for it gives you peace of mind.
2. Does your retirement plan factor in care you may need?
A solid retirement plan should be resilient, capable of withstanding not just regular market fluctuations but also significant, unforeseen expenses.
If you work with a financial advisor, ask them to model different scenarios, including market fluctuations, inflation and future care needs so you can adjust now.
You can investigate funding strategies, coverage choices, or spending adjustments before you need care, when you have the greatest flexibility and control.
3. Do you know what Medicare actually covers?
Many older adults believe Medicare will pay for long-term care, but this is a widespread misconception.
It might cover up to 100 days in a skilled nursing facility following a hospital stay, but it typically does not cover a home caregiver if you have a chronic health condition.
A care coordinator can help you make sure you’re getting the help you’re eligible to receive from Medicare, such as medical equipment or a stay in a skilled nursing facility if it’s needed.
4. What’s your long-term care policy’s elimination period, and how is it counted?
Long-term care insurance can be a part of your financial plan, covering some aspects of support you might need later in life, but it’s important to understand its limitations.
Most policies have an elimination period, or the waiting period before benefits begin.
Elimination periods typically range from 30 to 180 days, and individuals must pay for their own care out of pocket during this time.
Policies with longer elimination periods often have lower premiums, while shorter elimination periods cost more but reduce out-of-pocket expenses when care is needed. Factor in these provisions when making decisions about your long-term care strategy and outlook.
5. Do you know how you’ll pay for care during the waiting period?
During the elimination period, you are responsible for the cost of care for a certain period before your long-term care insurance benefits start.
It’s important to prepare for that coverage gap ahead of time to give yourself and your family peace of mind.
Review your policy details to understand limitations, covered services, and optional features such as inflation protection or funds for home modifications.
6. Do you have coverage that begins immediately?
Having coverage that begins immediately (or even you need care) will help you navigate unexpected challenges like an injury or illness while remaining as independent as possible.
Imagine you’re riding your bike and break your leg after a bad fall. You’ll need help with some daily activities like driving and preparing food, especially if you live alone and don’t have relatives nearby.
A long-term care policy with a 90-day elimination period won’t cover assistance, and Medicare is unlikely to help because it’s a short-term need.
Securing reliable, portable coverage that follows you wherever you go helps to reduce uncertainty and simplifies decision-making for you and your family.
7. Do you know who will care for you if needed?
Many older adults feel confident in their ability to pay for care, but they’re less sure about who will provide it. Even if you have children or family members who live nearby, it’s unlikely they’ll be able to juggle full-time caregiving along with other responsibilities.
You need to hire reputable, reliable caregivers and also manage schedules, doctors’ appointments, medications and other aspects of care.
Make an Investment in Your Independence
Kendal at Home helps older adults stay in control as they navigate what’s next.
As a member, you’ll have a care coordinator who gets to know you and works with you to develop a plan for staying independent.
They’ll help you take proactive steps to stay healthy and stay in your home, with services that range from wellness assessments to referrals for home maintenance and improvements. They can manage the logistics of care, from vetting providers and managing schedules to accompanying you to doctors’ visits as needed.
You’ll also have a lifetime guarantee of care coverage that follows you wherever you go.
The best time to plan for the future is now, before you need care and when the costs of membership are lower.
Start planning today. Register for an upcoming seminar.
