Have you ever wondered if Long Term Care Insurance makes sense and how to choose the right plan for your needs? If so, stay tuned for the next episode of All About FERS. Hi, I'm John Raleigh, Certified Financial Planner with All About FERS, and today, we're going to discuss long term care and long term care insurance. Long Term Care Insurance is a type of insurance that helps cover the cost of care needed due to chronic illness or disability that impacts the activity of
daily living. This care can be provided through various settings, including a nursing home, assisted care facility, or even at home. The six activities of daily living are generally recognized as one bathing. This is washing oneself in a tub or shower. It includes personal hygiene and grooming. Two is dressing, putting on and taking off clothes. Three is eating, feeding oneself. Toileting is four, getting to and from the toilet and using the toilet and related personal hygiene. Fifth
is continence. This is maintaining balance bladder control. And sixth is transferring, moving in and out of bed or a chair. I need to stress at this point that we're talking about taking insurance to help with those needs. Insurance is designed to protect yourself and your family financially for potential losses, as outlined in an insurance contract, there is a chance you have had a family member that needed Long Term Care, or know someone that has
needed Long Term Care. The additional costs that long term care causes can devastate a person or family's plans for a comfortable and successful retirement. As our population ages, we're seeing more and more of the need for this sort of coverage. The problem is, if you have the need currently, it may be difficult to get that coverage, and the older you get, the more expensive the coverage is. This means consideration of choosing whether or not to buy Long Term Care Insurance is very
complicated. Here's a simpler way to think about it. If you're ultra wealthy, and I mean to the level where you can self insure this need, you probably have long term care insurance, because you understand spreading your risk over a larger group helps reduce the costs, so having Long Term Care makes sense for you. If you're on the other hand of the spectrum, you have little or no assets for retirement and for life, then you need this coverage, but you'll not be able to afford it.
This means you have to take a chance that you do not have a long term care situation in your life, and if you do, you will most likely have to rely on your family or your state to help meet your needs. If you're in the middle, not the ultra wealthy, and have some assets, you are the one that needs Long
Term Care the most, but you may not be able to afford it. Time needs to be spent to review your situation, identify the assets you have and how a long Term Care stay will affect you or your family, then you will need to find out how to pay for this coverage if it's needed, the decision that is not emotional but financial, and this will help you come to the best conclusion for you and your family, it is a very important decision and needs to meet what you and your family's needs are.
Now I hope this clears up some confusion about Long Term Care and Long Term Care Insurance. Thanks for stopping by All About FERS and until next time, Happy Planning!