Imagine you’re at the pinnacle of your career, and a sudden stroke forces you to learn how to walk again. This situation was reality for one of Tammy Fraser’s clients that highlighted the need for more discussions about long-term care (LTC). We spoke with Tammy Fraser, a financial planner at World Financial Group, and Candice Darien, Life Regional Vice President at Nationwide about why long-term care planning is an essential part of a comprehensive financial plan. Long-term care insurance can help manage the high costs associated with services such as nursing homes, adult day care, and in-home nurse assistance. Here are five considerations for why long-term care insurance planning is crucial for your financial future.
1. Ensure Comprehensive Financial Planning and Avoid the Challenge of Self-Insuring
While many people focus on accumulating retirement savings, they often overlook the high cost of long-term care. Services like nursing homes and in-home care can quickly drain your retirement assets if you’re not prepared. Long-term care insurance helps to provide financial security by allowing you to protect your hard-earned savings, while maintaining control in who takes care of you.
2. Reduce Retirement Stress and Fear of the Unknown
Tammy shared that when her client had a stroke, it completely changed his life and made him depend on others for what support they could offer. “We don’t have a crystal ball” said Tammy Fraser. “Understanding long-term care and its costs earlier will better help us plan before we need it.” Investing in long-term care insurance is an essential part of self-care. It ensures that you will have the resources you need to maintain your quality of life as you age. With a solid plan in place, you can focus on enjoying your retirement years without the stress of potential long-term care costs looming overhead.
3. Flexibility and Choices in Care
With long-term care insurance, you have more options for the type of care you receive. Whether you prefer in-home assistance, adult day care, or a nursing home, your insurance policy can help cover these choices, allowing you to select the care that best fits your needs. Tammy Fraser added “Can you imagine your best friend bathing or feeding you? Options are taken away if we lack the money and resources to find the care we want.”
4. Benefit from Linked-Benefit Policies
Linked-benefit long-term care policies, such as those offered by Nationwide, offer dual benefits. These policies not only provide coverage for long-term care expenses but also act as life insurance with a guaranteed death benefit. If you never need long-term care, your policy will still provide value to your beneficiaries.
5. Qualify More Easily While You’re Young and Healthy
Health tends to decline with age, making it harder to qualify for some long-term care insurance later in life. By purchasing a policy younger, you increase your chances of being approved and securing better coverage options. “I grew up watching caretakers work” stated Candice Darien. “I didn’t want to procrastinate for planning for myself and my parents. We worked too hard not to have some level of security in place.” Insurance companies calculate premiums based on age and health, so younger applicants often benefit from more affordable rates. By locking in a lower price now, you can save money over the life of your policy.
Summary
Long-term care insurance is a crucial element in a comprehensive financial strategy, especially for those nearing retirement. By investing in a policy well-before you need it, you can lock in lower premiums, benefit from linked-benefit policies, and ensure your financial legacy is well-protected.
Ready to take control of your future? Visit Nationwide.com or connect with Tammy Fraser to learn more about long-term care.
Nationwide and World Financial Group are separate and non-affiliated entities.