Long Term Care Planning

There is a potential heavy burden that many Americans, especially Baby Boomers are going to be facing and that is the cost of long term care. Very few have actually planned for it and it is a silent ticking bomb that could explode everything that you have worked and saved for.

91% of respondents to a recent survey said their financial/insurance professional has not discussed potential long-term care costs with them according to the Age Wave/Harris Interactive survey, “America Talks: Protecting Our Families’ Financial Futures”.

There are 3 major topics of concern that are crucial that are not being talked about amongst family members that need to be addressed:

  • Preferred options and the different costs of care (nursing home care vs. In-home care);
  • Roles and responsibilities of family members in researching and overseeing that care;
  • Funding the long-term care.

According to the survey, 96% have not had these talks with their parents, 92% of spouses have not had a discussion regarding all three of these long-term care topics with each other and 95% of parents had not discussed them with their adult children.

This isn’t just a financial issue, it also becomes and emotional topics. People are looking to their financial advisor to talk to them about long term care. Confusion about long term care insurance is probably one of the biggest hurdles in developing a plan. It is important that people understand what their choices are and that a long-term care plan should be a written plan similar to a living will.