Advisors' Corner

Share:

Handle with Care

Published: November 4, 2021

Handle with Care

Planning for the Cost of Long-Term Care Is an Important Part of Retirement Planning

A recent study found that most Americans don’t have any idea of the cost of long-term care. Even more alarming, many Americans believe that if they do need long-term care, the government will pay for it. In reality, Medicare typically covers only three months of nursing home care, and only if you spend time in a hospital first.

Medicaid’s coverage of long-term care doesn’t start until you have exhausted nearly all your savings. In addition, while Medicaid covers nursing home care for people who qualify, coverage of in-home health services is limited. And it doesn’t cover assisted living at all. Qualifying for Medicaid is more difficult than ever.

Good long-term care planning could help give you more options should you require institutional care. Following are some steps to consider:

Long-Term Care Insurance

These policies are still relatively new, but they’re becoming more flexible. Along with nursing home care, some policies cover in-home care and the cost of an assisted living facility. The cost varies, depending on your age, when you buy the policy and the services covered.

The younger you are, the lower your premiums, which is why many financial planners suggest buying a policy when you are in your 50s. However, before you buy a policy,make sure you can afford to pay the premiums for many years. That’s because it could be a long time before you need long-term care. Many people never need nursing home care, and even those who do often stay only a few months.

GUIDE TO LONG-TERM CARE INSURANCE >>

Family Care

Will you be relying on relatives to care for you? If so, there are some key issues to consider. Do your children or other family members live nearby? Will you pay them? Will you feel guilt over burdening them with your health problems? Will they feel burdened taking it all on? There are some really hard questions that will need to be put on the table when considering family care.

Reverse Mortgages

A reverse mortgage is a loan against your home that doesn’t need to be repaid until you move, sell or die. You can receive the money in a lump sum, line of credit or monthly payments for the rest of your life.

You must be at least age 62 to qualify for a reverse mortgage. Because closing costs are typically high—up to 5% of the home’s value—they’re not a wise idea for homeowners who plan to move in less than five years. But if you want to remain at home, a reverse mortgage could provide money for in-home care or cosmetic adjustments to your home such as wheelchair access.

Planning for Long Term Care

Tuesday, November 9th, 12:00 PM ET

Learn how long-term care events impact you and your loved ones and options that can help mitigate the risks of long-term care.

Register for Webinar >>

This material is for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

This material was prepared by LPL Financial, LLC.

View all posts

Members' Voice Testimonials

This credit union is the best, I love the customer service and you can't beat the interest rates. I'm happy to be a member of this great credit union.

- James · Locust Grove, GA

The branch manager introduced herself and was extremely helpful. She stated that if there is anything we ever need to please let her know. Very positive experience!

- Larry · Cumberland, MD

Greta was absolutely amazing - as always. She makes me and my parents feel valued and supported. We are forever grateful. [The Credit Union] has been hugely supportive over many years. And we feel known and cared for.

- Eliza · Washington, DC

Long as I have been with the credit union, I haven't had any problems. I also like the protection on my account.

- Charles · Upper Marlboro, MD

My overall experience at the credit union was exceptional. The staff was hospitable offering water, my service was timely and professional and the office was well lit and clean.

- Denise · Washington, DC

As a member for more than 40 years, i have always had great service from the USSFCU and know that they stand behind their great reputation.

- David · Silver Spring, MD

A top rate Credit Union, [I'm] privileged to be part of! Thank you for all you do for our family! USSFCU Credit Union was able to resolve our financial situation - vehicle, personal loans, customer service/recommendations, within 6 months. We belonged to another credit union for over 20 years, with results not even close to comparison. We switched ...

- Manuel · Bowie, MD

Your people and products are amazing. The recent [online banking] overhaul is phenomenal. [I've] been electronic banking since Tele action phone banking - paying bills with my push button landline decades ago. USSFCU is light years ahead of everyone else in terms of ease of use and client experience!

- Misty · Brookings, OR

I have been a member for more than 30 years. I no longer reside in the DC area but continue to bank with USSFCU because of the ease and the customer service.

- Tamra · Denver, CO

I have been a member for over 50 years, and I have always gotten good service with loans, when I had to have service at a branch, and when I needed to have money sent to me from my savings account. The personnel have always been friendly and treated me with respect.

- John · Fort Washington, MD

I especially appreciate being able to quickly speak with someone (not a robot) and that person has always been knowledgeable and helpful.

- Bernard · Richmond, VA

Excellent customer service streamlined and transparent process. The representatives are efficient, knowledgeable, and understanding of the type of loans offered by Credit Union.

- Erwin · Ellicott City, MD

The USSFCU behaves as a credit union ought to behave. The staff works with and for the members, not for a corporate board. Interest rates for a car loan, a home improvement loan, and a mortgage are low and terms are transparent.

- Ruth · Takoma Park, MD

Staff are courteous and friendly to work with. Very knowledgeable about services and products offered or available. Excellent follow-up with customers.

- Jacquelyn · Sanford, FL

I have appreciated USSFCU services for many years since I left my work on Capitol Hill. I have appreciated the occasional webinars on purchasing a home or retirement planning.

- Jamie · Washington, DC

I have been a member since 2006, and have always appreciated the customer service response to any concern or query. In addition, as I have traveled extensively, USSFCU has provided support and access.

- Kathleen · Ukiah, CA

I've had a credit union account for decades, even though I no longer work on Capitol Hill. I now have two accounts. I've been able to do all of our banking remotely, by app or by phone.

- Richard · Washington, DC

I have been a USSFCU member for almost 20 years. There is nowhere else I want my money to be. I always receive excellent service.

- Nicole · Alexandria, VA

I deeply appreciate the stellar service, the proficiency, the professionalism, and the kindness. I am truly honored and grateful to bank with a financial institution that treats customers like family.

- Angela · Alexandria, VA

Read More testimonials.