Planning for the Unpredictable: The Reality of Long-Term Care

Apr 3

When envisioning your future, long-term care might not be top of mind. Yet, the statistics paint a compelling picture: over 70% of Americans aged 65 and older will require some form of long-term care in their lifetimes, according to the U.S. Department of Health and Human Services. Whether it’s a nursing facility, assisted living, or in-home care, the need is undeniable—and the costs, unfortunately, are skyrocketing.

The Financial Reality of Long-Term Care

Let’s talk numbers. The annual median cost for a private room in a nursing home has climbed to $108,405, while home health aide services average around $61,776 per year (Genworth Cost of Care Survey, 2023). With inflation, these costs are expected to rise even further, leaving many unprepared for the financial strain.

But here’s the real challenge: Medicare and standard health insurance often do not cover most long-term care expenses. Without a PROACTIVE PLAN, families may face difficult decisions, draining savings and assets meant for other goals.

Start Young: The Advantage of Planning Early

One of the most overlooked aspects of long-term care planning is timing. Beginning in your younger years provides several critical advantages, particularly when it comes to cost. The price of long-term care insurance increases significantly with age, often doubling or tripling between your 50s and 70s. In addition, qualifying for coverage becomes more difficult as health issues arise, potentially limiting your options.

By starting early, you can:

· Lock in lower premiums while you’re in good health.

· Gain access to a broader range of policy choices and benefits.

· Allow your financial plan to incorporate long-term care steadily, without financial strain.

Planning early is not just about cost—it’s about giving yourself and your family peace of mind. An early investment in long-term care coverage can support your financial future and enable you to receive the care you need, when you need it.

Why You Need a Plan Today

Planning for long-term care is about more than just finances—it’s about peace of mind. Having a strategy in place allows you to preserve your independence, manage your family’s resources, and receive the care you deserve.

A comprehensive plan might include:

· Long-Term Care Insurance: Policies designed to cover the rising costs of care.

· Hybrid Insurance Policies: Life insurance with long-term care riders that offer added flexibility.

· Health Savings Accounts (HSAs): Tax-advantaged savings that can be applied toward eligible care expenses.

· Trusts and Asset Strategies: Tools to pass down your wealth for future generations.

By working with a knowledgeable financial advisor, you can explore your options and develop a tailored plan that fits your needs and goals.

Take Control of Your Future

Don’t leave your future to chance. We specialize in helping individuals and families navigate the complexities of long-term care planning, helping them be fully prepared for life’s uncertainties. Contact us today to schedule a no-obligation consultation and learn how we can help with what matters most to you.

Let’s start planning today—for the care you’ll need tomorrow.

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Investment advisory services offered through Redhawk Wealth Advisors, Inc., an SEC Registered Investment Advisor. SEC Registration does not imply any level of skill or understanding. Redhawk Wealth Advisors and Patten Financial Group are unaffiliated and separate legal entities.