You've got several options when it comes to a long-term care insurance plan, says Gena J. Wolbrecht, Senior Vice President, Platform Investments Executive, Regions Investment Services. To help you decide on a policy, consider these four factors.
- Where you plan to retire. Cost of living can vary widely by location and so can cost of long-term care. Knowing where you'll live — and the average monthly cost of your desired care — will help you determine how much coverage you need.
- Your current financial situation. Your net worth and what you want to be able to leave to loved ones will affect how much long-term care coverage you should get. Consider all available assets, including money market accounts, investment accounts, and retirement accounts, and which ones you are willing to tap into if necessary.
- If you have family nearby. Many people rely on family members to provide long-term care when they need it. If this isn't a realistic option, you may need more insurance coverage.
- Standalone long-term care insurance vs. a long-term care rider. High-income earners might consider a standalone long-term care insurance policy, but there are other options if you're concerned about the cost, Wolbrecht says. For example, a long-term care rider may be added to some annuity policies — which allows the policyholder access to tax-deferred funds from the annuity for long-term care provisions — if necessary.
Start thinking about your long-term care plan now so you won't have to worry about it in the future.
