Have you ever wondered what would happen to you, in the event that you need long-term nursing care? Many people assume that they could fall back on family help to get through a tough time, but you should remember the potential cost to your children and grandchildren. Many caregivers of elderly adults are not exactly young themselves, and beginning to face their own health concerns. And since 70 percent of caregivers perform this role for more than a year, and 24 percent carry the burden for more than five years, we aren’t necessarily talking about a temporary situation.
These issues are exactly why many federal employees choose to invest in the Federal Long Term Care Insurance Program (FLTCIP). Of course, long-term care insurance is a commitment, and you might question whether the FLTCIP program is the right option for you.
Alternatives do exist. Some people choose to self-insure, meaning they use their Thrift Savings Plan to save the money they would have spent on insurance premiums. Then, if you need long-term nursing care, you have the money to pay for it. If not, the money is available for other retirement needs. The problem with this idea is that you can’t predict how much nursing care you will need, and how expensive it will be. Unless you set aside a very large amount of money, you risk running out of funds to pay for your nursing facility or home care.
The other option is to purchase a private policy, rather than utilizing the FLTCIP program. Some federal employees prefer private long-term care insurance, because they might be able to access features such as:
- Discounts (based on health and age)
- Premiums based on gender
- Discounts for couples
- An annual payment option
- A partnership policy which mitigates the spend-down requirements to access Medicaid
The FLTCIP website actually offers a checklist to help you compare features of the program with potential features of private long-term care insurance. Or, for more information on long-term care insurance or retirement topics in general, call us for more assistance. We specialize in helping federal employees weigh their options and plan for a successful retirement.
