Empower Blog

November 08, 2023

Your Long-Term Care Planning Checklist

Financial Planning
Long-term care is a crucial but often less thought about part of financial planning. It's understandable people don't necessarily want to think about a time when they or their loved ones may not be able to take care of themselves, but the reality is that having a plan in place, such as a Long-Term Care Insurance policy, will help protect not only your finances, but also you and your family's peace of mind.

There are many factors to consider when putting together a plan for long-term care. We've rounded up the key topics to help you start the discussion with your loved ones.

Who Will Be Responsible for Your Care

Deciding how and where you would ideally like to receive care are the first steps to building your plan, as these choices influence how much your care might cost. It's also worthwhile to think about who in your life will be affected by your long-term care plans and have a conversation with them to strike a balance that everyone is comfortable with. Here are some questions to get you started:

  • Who will provide your care?
  • Will my family be active (a care provider) in providing my care or will they supervise my care?
  • What impact would that have on your loved ones?
  • Where and how would you like to receive your care?

How Will You Pay for Your Long-Term Care Needs

In 2021, the national median costs per month for Homemaker services were $4,957; a Home Health Aide cost $5,148; Adult Day Health Care $1,690; Assisted Living Facility $4,500; and Nursing Home Semi-Private Room $7,908. It's easy to see how these expenses can add up quickly, causing financial strain. So, it's important to determine how you will afford the cost of care in advance, by asking questions such as:

  • What portion of income has been earmarked for your care?
  • Which assets would you use to pay for care?
  • How liquid are those assets?
  • What are the potential tax consequences?
  • Do you have an old non-qualified annuity?
  • Do you rent or own property?
  • Do you have a Long-Term Care Insurance policy?
  • Do you have any Life Insurance policies with living benefits, such as Long-Term Care riders or cash value?

Documents to Consider as Part of Your Long-Term Care Plan

Having these items together and accounted for is a great way to give your loved ones clear instructions about your preferences. A Power of Attorney and medical directives, in particular, can help ease tension and aid in decision making for the family, while insurance and financial documents will be helpful in addressing funding for your care.

  • Power of Attorney (POA)
  • HIPAA authorization to receive medical information
  • Living will/last will and testament
  • End-of-life – medical directives
  • Life Insurance Policies – confirm beneficiaries
  • List of assets with account numbers and associated passwords to access online accounts
  • Names of financial professionals with contact information

  • While there are many pieces to put together to create a successful long-term care plan, Long-Term Care Insurance is a helpful option that can cover many areas of your care. Beyond helping you pay for the care you deserve, it also helps protect your retirement savings and your family's financial well-being. And the sooner you get started, the better. As you age, the cost of coverage may increase, or if your health declines, you may find yourself unable to get a policy altogether. That’s why we’re here to help you find the policy best suited to meet your needs.

    For help crafting your long-term financial plan, get in touch with one of our knowledgeable Financial Advisors. Schedule a meeting to walk through these questions and more to craft a personalized plan for your financial future.
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    About the Author
    Professional Picture of Joe Yates
    Joe Yates

    Wealth Management by CommunityAmerica

    Joe Yates is a Financial Advisor focused on helping members establish peace of mind by developing a comprehensive financial plan anchored by their goals.

    Insurance products may be sold through CommunityAmerica Insurance Agency, LLC, a wholly owned subsidiary of CommunityAmerica CUSO One, LLC and a licensed insurance agency in Missouri and Kansas.

    Securities and advisory services offered through Copper Financial Network (Copper Financial), LLC, Member FINRA/SIPC. Copper Financial is a SEC registered investment adviser. Copper Financial is a wholly-owned subsidiary of CommunityAmerica Credit Union. Wealth Management by CommunityAmerica is a marketing name used by Copper Financial. For important disclosures from Copper Financial, including our Form CRS, please visit here. Investment and insurance products, including annuities:


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