Three Simple Ways to Budget for Long-Term Care Insurance

By Steve Elliott | July 17, 2023 | Comments Off on Three Simple Ways to Budget for Long-Term Care Insurance

If you’re like one of the millions of Americans who saved for retirement, most likely through a 401(k), you may understand the impact inflation might have on your future. For the past 13 years, the stock market has been rising steadily to record high after record high. That sounds great on the surface, but does it mean your 401(k)’s value will be what you expect once you retire? More importantly, do you know what would happen if you or your spouse or other legal dependent needed long-term care? Have you looked into what the long-term care insurance cost would be if you get that insurance?

Long-Term Care Insurance Cost San Marcos CA - Three Simple Ways to Budget for Long-Term Care Insurance

Long-Term Care Insurance Cost San Marcos CA – Three Simple Ways to Budget for Long-Term Care Insurance

Most people assume Medicaid or their insurance would cover long-term care, but that’s not the case. Most private insurance policies only cover short-term care, meaning a few weeks. Medicare only covers one type of long-term care (in most states) and only after the individual has exhausted all their available savings and assets, which may include the equity in their home if they own one.

That’s why now is the time to begin planning for a long-term care insurance policy. A quality long-term care insurance policy could provide coverage for up to three years of long-term care for either you or your spouse or both if required, depending on your specific needs. Plus, you would get to choose the type of elder care or long-term care you used, whether it was in-home care, assisted living, or nursing home care.

If you are struggling to figure out how you could afford a long-term care insurance policy now, let’s look at three ways you could budget for this investment now.

First, make it a priority.

If somebody doesn’t make something a priority, it becomes that much more unlikely they will focus on it now or in the future. Passion is a great thing, but most of the time passion slips away quickly.

You can’t be passionate about long-term care insurance, not in the sense of being all gung ho today but have no plan for tomorrow. Also, if you say you don’t have money for it, instead say, “It’s not a priority” and you’ll quickly realize how empty that sounds.

You really do need to make it a priority. Think about what could happen in the event you or your spouse needed long-term care for a year or two. How would you pay for it? And more pressing, how would paying for it out of your retirement funds and savings or 401(k) affect the rest of your retirement?

Many people have to return to work in their middle to late 70s or even their 80s because they suddenly run out of money. If you make it a priority as though tomorrow you could be facing these challenges, it becomes a little easier to budget for it.

Second, look at your current expenses.

More and more people today use debit cards and credit cards to pay for everyday items. Money slips out of their accounts faster than they realize. If you get a handle on your current expenses shifting back to cash, even for luxury items you overlook, like coffee every day at a local café or video games, you will find ways to trim expenses.

Third, focus on the future.

It’s important to focus on the here and now, yes, but when it comes to the possibility of long-term care expenses, when you focus on the future and you recognize what might happen in the event you or your spouse needed long-term care, you can find the determination to make sure you have enough set aside each month for long-term care insurance today.

If you or a loved one are considering Long-Term Care Insurance Cost in San Marcos 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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