Estate planning includes creating a will or trust, but it can also include long-term care planning. Long-term care refers to personal care services that a person may need as they age, including those needed to address significant health conditions or disabilities.
These services are intended to help the person with activities of daily living, like eating, dressing themselves or bathing, for example. They are often provided in assisted living facilities and nursing homes.
Long-term care insurance
Long-term care insurance covers medical expenses that may not be covered by traditional health insurance. It may pay for in-home care, care coordination, adult day care and hospice care.
Many people are concerned with the cost of long-term care insurance, however, the cost of long-term care itself may exceed what many people can afford. Some estimates state that long-term care could cost an individual $50,000 per year or more.
While long-term insurance does not pay for everything, it can help the person to avoid draining his or her savings. It also can relieve family members of a financial burden and it can help safeguard any remaining assets that the person may want to leave to beneficiaries.
Long-term care insurance can be used as part of an estate plan. Sometimes, employees have an option to purchase a long-term care policy through their employer at a lower rate. However, individuals can purchase a policy on their own and there are many plans to choose from.
It may be helpful to consider the potential costs of long-term care when creating an estate plan and whether long-term care insurance is the right option. An experienced estate planning attorney can answer questions and provide advice.