A wise man once said, “If you don’t know where you are going, any road will take you there.”
Such is the case with long-term care planning. Many people realize that at some point it will be likely they or their partner will need assistance with the activities of daily living. As we grow older we see first-hand parents, relatives, or colleagues who suffer health conditions that require hands-on care. Even so, most people put off implementing a plan due to cost or the thought that it will not happen to them.
We have seen several financial plans that discuss the risk of long term care planning and recommend coverage yet a plan is never implemented. If this is the case the individual is 100% self-insured. With the average cost of nursing home care up to $10,000 a month, it can be a huge drain on assets. This is compounded by the fact that if the person is still working their employment income will be affected. The average stay in a facility is 3-5 years. This puts on average up to $600,000 of assets at risk! A longer stay in a facility due to dementia will further erode assets and your financial well-being.
An elder care attorney can look at ways to shift assets (prior to five years of a claim) that can shelter funds and property. But, in most cases, control is relinquished to a trustee or other family members. Most financial planners agree that an insurance policy that shifts the cost from the insured to the insurance company is the best strategy for most people. Policies have evolved over the years to include home health, adult day care, assisted living as well as nursing homes. Plans are also available that return premium, have a death benefit, and build cash value if at some point the policy is no longer need or wanted.
The Unity Insurance can assist you in navigating policy options and determining if a long-term care policy would fit into your plan based on your own goals and objectives. We have assisted many physicians over the years in implementing a long-term care insurance policy. For more information or to set an appointment please contact Keith Mathis at 443-449-2327 or by email at kmathis@medchiagency.com.
As a member of the Maryland Psychiatric Society we welcome the opportunity to review your current coverage and assist you in securing a long-term care insurance policy.