With life expectancy increasing, many of us can expect to live well into our 80s, 90s, or beyond. This is great news, but it also opens up another realm of possibilities. At some point, it is likely that you will need specialized nursing care, whether to help with a medical condition or just to receive assistance with daily living. Who would provide this care when you need it?
Many of us expect that our family members will take on these duties, but it won’t necessarily be a temporary situation. Seventy percent of caregivers perform this role for more than one year, and 24 percent take on the responsibility for more than five years. Your children or grandchildren might have medical needs of their own, and some of us don’t exactly live close to family these days.
For those reasons, and many others, you might consider enrolling in the Federal Long Term Care Insurance Program (FLTCIP). Others choose to “self insure”, meaning they expect the money in their Thrift Savings Plan to cover the cost of nursing care. Of course, this plan only works out if you don’t need those distributions to cover regular living expenses, Plus, with the high cost of nursing care you run the risk of burning through that money pretty quickly. It’s difficult to predict how long you will need specialized care, or how much it will cost in the future.
You also have the option of purchasing private long-term care insurance. You can actually access a checklist, via the FLTCIP website, that helps you compare features of the federal program with features that might be offered by some private insurance providers. When evaluating your options, look for things like:
- 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
- As a Federal Employee, you can buy an unlimited, lifetime benefit (rarely seen in Long Term Care policies)
We can help you compare your options, and decide how to best prepare for your future. Just give us a call and we’ll be happy to walk through your options with you.
