As people age, what they need to live a healthy and comfortable life will evolve as their circumstances shift. If health issues arise later in someone’s life, they may require skilled medical support in their homes to continue aging in place. They may also eventually need to move into a nursing home or a similar facility where professionals can oversee their care. Ultimately, long-term care planning is a consideration that almost anyone preparing for retirement needs to address, but it often goes overlooked as people focus more on what happens when they die during the estate planning process.
Elder law concerns often dovetail with estate planning matters. Those putting together an estate plan or thinking about updating their existing documents as they prepare for retirement may need to have a plan in place to pay for medical expenses that Medicare will not cover. The following are some options for paying for the support someone may require as they age.
Many older adults will try to set aside enough liquid capital to be able to cover their own expenses as they age. However, nursing home rooms cost thousands of dollars each month, which means that those who actually need that level of support may find it prohibitively difficult to set aside enough money to cover those costs. They may need to rely on outside resources to obtain the best standard of care possible.
Long-term care insurance
There are some employers who provide more comprehensive insurance coverage to their workers, as well as plenty of people who buy supplemental insurance on their own. Long-term care coverage is a form of insurance that will pay for nursing home costs and similar expenses when someone has a major shift in health. If people purchase a policy later in life, the premiums assessed by the insurance company might be high enough to make long-term care insurance prohibitively expensive.
Texas Medicaid benefits
Those with limited income and personal assets can potentially apply for Medicaid benefits to cover their long-term care costs later in life. People generally need to plan very carefully to qualify for Medicaid in a timely fashion without penalties. Those who change how they hold certain assets at least five years before they apply for Medicaid benefits will have an easier time getting coverage when they need it and will be less at risk of estate recovery efforts later.
People may plan on using one of these resources or maybe a combination of two or all three. Understanding how people cover exceptionally high care costs can help individuals to more effectively plan for their future financial stability and legacy.