Most conversations about long-term care planning focus on insurance that’s designed to cover—or at least mitigate—the cost of care. That’s important, but is it enough?
You need a long-term care plan that covers the total range of issues you’ll face when you need assistance, whether it’s the gradual needs that accompany normal aging or a sudden change in your health due to accident or illness.
As a society, we have become increasingly isolated and independent. It used to be that if we needed a ride somewhere, we asked a friend or neighbor; today, we turn to our favorite ride-share app. If we were sick and wanted some prepared comfort food, we would call someone who could stop at the store or maybe even cook something for us; today, that delivery is requested through an app and made by a stranger.
We might take pride in not being a burden to family and friends, but it’s a false pride. It’s almost self-idolatry.
That type of independence is not biblical. We were created to be dependent on God, our families, and our community.
Jesus didn’t live and work alone, and neither should we. We should care and be cared for; we should serve and be served.
Carry each other’s burdens, and in this way you will fulfill the law of Christ. (Galatians 6:2, NIV)
With that in mind, let’s take a look at the issues and options you might want to consider when you’re approaching retirement and developing a long-term care plan.
Where will you live?
A popular trend for seniors is aging in place, which allows them to stay in their homes where they have friends and neighbors nearby with whom they already have long-term relationships. If you choose this path, you may need to plan for structural modifications to your home as you age, which can range from simple things like changing doorknobs and adding bathroom grab bars to installing ramps and stair lifts.
Another popular option is a continuing care retirement community (CCRC), which offers independent living with access to higher levels of care (assisted living, rehabilitation, skilled nursing, memory care) as they become necessary. These communities typically offer a range of amenities and activities that keep their residents active and engaged. If you select a CCRC near where you currently live, it’s likely that you’ll already know some of the residents.
As iron sharpens iron, so a friend sharpens a friend. (Proverbs 27;17, NLT)
Or you may take the multigenerational household approach and choose to live with an adult child or another younger family member. Multigenerational living offers a wide range of benefits, including sharing financial responsibilities, reducing loneliness, building deeper family relationships, and increasing social capital—all issues associated with improvements in health and longevity.
Having a strategy for where you’ll live before you need to actually make a move is an important part of long-term care planning.
How will you pay for care?
Regardless of where you live, your care needs will increase as you age. Medicare will cover some of those needs, but usually not all, especially if you suffer from a debilitating condition. Family members may or may not be able to provide what you need, especially if that includes skilled nursing. This is typically when we think of long-term care insurance, but that can be expensive.
Alternatives to long-term care insurance include annuities and life insurance with long-term care riders that will allow you to receive payments to help with expenses when you meet the medical standards that necessitate long-term care. Or you may choose to pay for your care out of your personal assets. This is a personal choice based on your circumstances that you should make after consulting with a qualified wealth advisor.
Even if you are years away from retirement and in perfect health, now is a good time to put together a long-term care plan for yourself and your family. You never know when you’re going to need it.
Think of your long-term care plan as a “taking care of one another” plan. It might be the most rewarding plan you make.
Related: “Your Next Assignment: Embracing the Emotional Journey of Retirement”
