I hear it all the time. "I don't need Long-Term Care Insurance. My spouse or my children will take care of me." Time for a reality check!
Aside from the psychological and physical toll, there is an economic impact on caregivers (who are overwhelmingly female). Consider that 65% of older persons with LTC needs rely exclusively on family and friends for their care.
In addition, one national study found the following impact on female caregivers:
- 33% of working women decreased work hours
- 29% passed up a job promotion, training or assignment
- 22% took a leave of absence
- 20% switched from full-time to part-time
- 16% quit their jobs
- 13% retired early
Worse yet, women who care for their husbands often deplete financial resources leaving little or nothing for their own care.
For more information, I would encourage you to check out this excellent article on caregiver.org that examines this very topic. https://www.caregiver.org/women-and-caregiving-facts-and-figures
Bottom Line: Long-Term Care Insurance can provide income tax free funds to help your loved ones care for you especially if you plan to stay in your home. The sooner you buy a policy the less it costs.
About the author: David Iobst is a Certified Financial Planner™ located in Bear, DE. He is currently accepting new clients in DE, MD, and PA. You can reach him via his web site www.davidiobst.com. Securities offered through LifeMark Securities Corp. 400 West Metro Financial Center Rochester, NY14623. Member FINRA/SIPC. (800) 291-7170.