The Baby Boomer generation is reaching retirement age. Many older folks hope to cash in on retirement plans to take vacations and treat their families. These individuals have carefully planned monetary investments around funding these twilight years.

However, some adults forget to plan for long-term healthcare. Anyone over the age of 65 has a 70% chance of needing long-term healthcare. This care is often expensive, potentially exceeding costs of $8,000 a month. What can people do to plan for these costs?

Ways to pay for long-term healthcare

People have several options for paying for long-term healthcare. These expensive procedures and services add up quickly, however. Finding the appropriate method for one’s finances is vital to maintain an enjoyable quality of life. People can pay for long-term healthcare in the following ways:

  • Medicare: Medicare provides immediate emergency care for anyone. This federal program can even cover a short stay in a nursing home. Benefits do not last long, and extra expenses come out of pocket.
  • Medicaid: Low-income individuals can access Medicaid for long-term health care. Those with high-value estates will not qualify for Medicaid. Without other arrangements, a person must liquidate their estate to qualify. Medicaid may cover many procedures but offers few choices and results in a lack of funds for anything else.
  • Long-term insurance policy: Few states offer long-term health insurance anymore. Over the past few years, an increase in premiums and medical care costs has made these policies financially unviable for most people. Additionally, insurance companies will often keep benefits if they go unused.
  • Living benefits insurance: These policies are relatively new to the marketplace and combine life insurance and long-term health care. These policies help cover medical care costs or pay out the remainder as a death benefit later.
  • Asset-based insurance: Instead of offering a monthly premium, asset-based insurance operates off a large lump sum deposit. If an individual needs care, the insurance company pays out a certain amount based on the deposit. The deposit is returnable if desired, and also pays out as a death benefit.

Find additional help with a lawyer

Those interested in finding out more about long-term health care can reach out to a local lawyer familiar with estate planning. An attorney can draft estate planning documents, parse through difficult insurance paperwork and help settle coverage disputes.