Long-Term Planning Starts Now

November 7, 2014
Law Offices of Debbie J. Cunningham

Most people know they need a long-term care plan but often times do not plan for it until something drastic happens. The best way to be prepared for your future is to begin planning now. Here are four ways to cover long-term care costs:

Long-Term Planning Starts Now1. Life Insurance or Annuities

One way to plan for long-term care is to purchase a life insurance policy or a Medicaid qualifying annuity. The policy holder pays a premium which eventually builds up a lump sum to help cover nursing home or at-home care. The money that’s not spent gets passed to heirs as a life insurance death benefit.

2. Long-Term Care Insurance

This insurance product helps provide for the cost of long-term care. Long-term care insurance is for people who can’t perform basic daily activities and need someone to help them. Many people don’t feel comfortable relying on family members financially so start planning now to have money available for your long-term care.

3. Medicaid

Medicaid covers long-term care costs for people whose income and assets fall below a certain level. It can only be used when you have no other financial resources to cover the cost of your care and your options may be limited by the programs that are available to Medicaid patients. It’s a good idea to save as much money as possible in your younger years so you’re not fully dependent on Medicaid to help you in your later years.

4. Personal Savings and Investments

Some people will be able to use their own assets for long-term care by calculating an amount of money to set aside to pay for their care, or by savvy investment plans over the years. Just make sure you understand the Medicaid guidelines that might affect your spouse and other family members.

Each option has its advantages and disadvantages and can be very complicated to understand. Make sure you talk to an attorney, insurance agent, and financial advisor to discuss what long-term care plan works best for you and your family.

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Law Offices of Debbie J. Cunningham

Debbie Cunningham is an Irving attorney providing affordable estate planning to the Dallas/ Fort-Worth areas. She understands the steps you should take to protect yourself and your loved ones. Debbie is family-focused and wants to ensure her clients are fully informed on the options that are available for their families. Debbie’s own blended family has given her valuable insights into the complexities of family dynamics.

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