For some, the cost of long-term care insurance is just too expensive; especially with so many living paycheck to paycheck or putting off this commitment until it’s too late to be affordable. Yet, while there might not be much you can do to bring down the price, there are some steps you can take to work this important coverage into your budget.
The first thing you should do is consult with a financial adviser. He or she may be able to help you rearrange your investments, resulting in a higher return. And if your investments are paying more, you’ll have more money to put toward insurance.
If you’re still working, remember that the Healthcare Reform Law includes a new program designed to help people save now for long-term care in the future. The CLASS Act (Community Living Assistance Services and Support Act) will allow you to contribute money out of each paycheck to a “pool” that works much like Social Security. Once you’ve contributed for five years, you’ll be eligible to receive financial assistance with long-term care expenses.
Healthcare Reform also expanded Medicaid coverage, so many seniors who didn’t qualify before will now be able to receive Medicaid benefits that can cover many long-term care costs. A qualified elder law attorney can help you determine if you’ll qualify under the new rules.
In addition to these programs, review your budget to see if there are areas that could be tightened up. Even small changes, such as taking your lunch to work or cutting your cable bill could help free up extra funds to put toward future long-term care expenses.
Commit to putting a certain percentage of your income into savings; within a few years you will likely have enough extra money to purchase a long term care policy and continue paying on that policy each month.
Just remember that putting a plan into action now is the best way to ensure your future is secure.
Attorney at Law
- Revocable Living Trusts: Flexibility in Planning and Beyond - February 20, 2024
- Tailoring Your Inheritance Plan: Beyond the Simple Will - February 15, 2024
- LGBTQ+ Estate Planning: Securing Your Future, Preserving Your Legacy - February 13, 2024