Long-Term Care Planning & Insurance Coordination
Shifting and self-insuring the right mix of long-term care risk
Consequences of Needing Care
The discussion of what to do when your husband or wife needs more care than you can provide is not an easy one. Family members can become stand-in nurses, providing informal care or respite care. There are numerous financial and personal consequences when long-term care (“LTC”) health care is needed.
Cardinal helps clients prepare to age with security, by preparing plans that account for healthy years, impaired years, and lasting legacies for survivors and beneficiaries. Self-insurance can be mixed with risk transfer and mitigation strategies that can decrease the overall risk of long-term care expenses in a retirement income plan.
Clients can benefit from seeing a written plan of how to pay for long-term care, by mixing guaranteed income sources like Social Security & pensions with variable incomes sources and assets like dividends, interest, and retirement savings. Combining non-correlated assets like emergency funds, insurance policies, and investments can improve outcomes and reduce risk.
Insurance Can’t Solve All Your Problems
Understanding the policy’s benefits, triggers, exclusions, and definitions is key to using a long-term care policy correctly.
Long-term health care, at home or in a nursing home, is associated with:
- Loss of independence in living arrangements
- Inability to choose how day-to-day care is provided
- The feeling of being a burden on family members
- Expensive fees, charges, and contracts for care
Create a plan that can help:
- Maintain flexibility on where you live
- Help control your plan of care and standard of living
- Pay for informal care from family or licensed professional caregivers
- Limit drawing down your portfolio
Retirement Income PlansRobust & Flexible
Make room for long-term care expenses in your financial plan.