By Matt Sussman, CLTC
American Insurance Planners, Inc.

How many times have you said that “it” is not going to happen to me? I know I have, and all of a sudden, “it” happens. Does this behavior stem from denial? Lack of being prepared? Maybe a little bit of both? Well, let’s talk about “it” not happening.

What I am talking about is the possibility that each one of us may need extended care sometime in our lives. I know, “it” is not going to happen to me. I even asked Peter’s crystal ball, “Will I ever need care?” To my delight, it was cloudy. But according to the U.S. Department of Health and Human Services, 70% of people turning age 65 this year can expect to use some form of long-term care during their lives (read here). Although this information is credible, it may be hard to relate to.

Personally, I am a bit more realistic, as I believe only about 50% of the people will need care while the other 50% will not need care. The real question is “Which side of the equation will you be on?”  If you guess wrong and you do need care, how will that impact the ones that you love and care about? How will it affect them emotionally, physically and financially?

Due to this uncertainly, it is prudent to address how you are going to handle this real issue. Based on John Hancock’s 2016 Cost of Care Study (read here), the average cost of a private nursing home today in the Philadelphia area is $110,321 a year. How would your financial plan be disrupted if you unexpectedly had this bill? Where would the money come from first? Would there be tax consequences to using this money?  What would it do to the current financial obligations you already have?

Today, there are more insurance options than ever before to help fund the need for extended care, whether it be at home or in a facility. With these planning options, we can help offset that cost of care and you will pay pennies on the dollar if care is needed. 

Your financial plan is only as good as your weakest link, and as Ben Franklin said, “If you fail to plan, you are planning to fail!”

If you would like to learn more about long term care planning and if it may be right for you, please contact me at 800-789-5191 or [email protected].