Tips to Start Saving for Long-Term Care Now

By Steve Elliott | June 5, 2023 | Comments Off on Tips to Start Saving for Long-Term Care Now

Have you ever thought of the possibility you might need long-term care in the future? Most people don’t. Even though we understand we’re mortal, that someday we will all die, not every single one of us — or even the majority of us these days — plans or saves for those end-of-life moments, including a funeral. Few people even consider the possibility of requiring long-term care for themselves in the future. Yet, about 70 percent of seniors will require some type of long-term care in the future. Having a policy to cover that care would be an asset and well worth the long-term care insurance premiums.

Long-Term Care Insurance Premiums Del Mar CA - Tips to Start Saving for Long-Term Care Now

Long-Term Care Insurance Premiums Del Mar CA – Tips to Start Saving for Long-Term Care Now

Now, long-term care is basically defined as any extended care that goes beyond a couple of weeks. If you assume your health insurance is going to cover that, think again. If you also assume that Medicaid will take over, think again. Medicaid is only going to cover (in most cases) only one type of elder care and only after this senior has used up most of their available savings and assets, which will include the equity in a primary residence.

If you don’t want to have to exhaust your retirement savings, 401(k), or other investments just trying to scramble and cover long-term care expenses in the future, let’s talk about three tips that can help you start saving for long-term care now.

Tip #1: Automatically put money away from each paycheck into a separate account.

This could be a high-yield savings account, for example, but you should start considering setting aside 10 or 15 % of each paycheck into this account now. Set up direct deposit so you never touch that money. If you’re in your 30s or 40s or 50s, this could be $50,000, $100,000, or even $150,000 by the time you retire.

Let’s say you live in Alaska and were in a nursing home for one year. You have to cover that on your own. That $150,000 you saved would cover six months of that. That’s it. Hey, but at least you started saving, right?

Tip #2: Sock away as much as you can in a drawer.

Or you could put it under your mattress if you care. Whatever you do, where you have loose change, coins, a dollar bill here or there, maybe a $5 or $10 or $20, keep stuffing it in a shoebox or some other place in your home.

In the future, in the event you are one of those three out of four seniors who will need long-term care, you can at least cover …. a few weeks of it.

Tip #3: Get a long-term care insurance policy now and start long-term care insurance premiums.

If the first two tips in this article do anything, we hope they wake you up to the reality of long-term care expenses. They can be astronomical and they’re only going to get higher. The best way to start saving (in a sense), or at least be prepared, is to begin a long-term care insurance policy.

The best age to begin a policy is in your early to mid 50s. If you wait any longer, you could be denied coverage, especially if there’s a family history of serious health issues or you are at risk of serious health issues. Even if you’re approved, the cost could be prohibitively high. So don’t wait. Start as soon as possible and you won’t have to sock money away under your mattress (or in a shoebox).

If you or a loved one are considering Long-Term Care Insurance Premiums in Del Mar CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today at (858) 350-3161.

Steve Elliott
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