Feb 17, 2020 4 min read

Did you know that 70% of adults over the age of 65 are predicted to need some type of long-term care for an average length of three years? While thinking about your future, you’ve likely already planned financially, but have you considered your long-term care options?

90% of people over age 65 would prefer to stay in their home and live independently as they age. However, regardless of whether you are one of those people or not, you need to make sure you have a plan in place to ensure your assets can go toward the things you want, not unexpected healthcare costs.

The Financial Cost

There are a lot of factors like chronic conditions and lifestyle choices that can increase healthcare expenditures as you age. In 2020 in the Pittsburgh area, the average cost for 5 years of long-term care services from in-home care to in-facility care based on the average amount of each that a person may need is $815,940. Understanding and planning for these potential costs now could be the difference between spending your savings on health care expenses instead of on the things you want.

The Emotional Cost

Are you concerned about being a burden to family and friends as you age? 72% of parents expect their children to become their long-term caregivers. However, only 40% of those children are aware they were chosen for that role. Once family and friends take over as primary caregivers, they have a 60% chance of showing clinical signs of depression, which is six times more than the general population. Having your family and friends become your caregivers may work out best financially for you, but it likely isn’t in their best interest.

What Now?

Having a clear picture of the cost and burden that long- term care can put on your family and friends is the first step to preparing your long-term plan. There are several long-term planning options available with varying levels of care coverage:

• Medicare and Medicaid are government provided health insurance plans that can cover some of the care you may need as your age; however, the amount they cover is income and asset based. They may cover some long- term care, but often not in-home or facility-based care.

• Long-term care insurance will fill in many of the gaps that Medicare and Medicaid may leave. Most plans are customizable and have options for full or partial coverage for all of the types of long-term care, but there may still be gaps in coverage.

• Envisage is a smart alternative to or supplement for long-term care insurance that helps you anticipate your future care needs and plan for them now so that you can live independently in your home as you age. Envisage is more than a financial plan. Each Envisage plan comes with your own personal wellness & care coordinator who will support you and help you navigate the health care system, should you need it.

No matter the plan or vision you have for your future, there is something out there that’s right for you.

Join Envisage for a free webinar, featuring Certified Elder Law Attorney Julian Gray on February 25 at 11 a.m. During this webinar, The Seven Signs You Need an Estate Planning Check-Up, you’ll learn why it’s important to ensure that your long-term care plan is reflected in your estate plan. Register at www.Envisage.org/webinar

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