What is Long Term Care Planning?Category:
Long term care planning is one of the most loving things you can do for yourself and your family. It is a process of financial planning by an individual, a couple, or an entire family, for the continuity of care of a person at home, in assisted living, orin a skilled nursing facility, as the person's health declines physically or mentally. The planning may include long term care insurance for those who can qualify. It also may involve placing resources in investments which will generate sufficient cash flow to meet expected needs. Finally, it may involve purchasing annuities, specialty insurance policies, or other financial products to cover the projected care costs.
For a married couple, the planning involves arranging the finances so that the healthy spouse is not impoverished by the needs of the ill spouse. This may involve qualifying the ill spouse for Medi-Cal (California's version of the federal Medicaid program). The Medi-Cal program might also be appropriate if the disabled person has an adult disabled child or other dependent for whom support is a consideration. There are many Medi-Cal planning options for married couples. There are fewer options for single individuals, but nevertheless, there are still opportunities.
Most long term care planning involves more than one single transaction. It may involve a series of steps to arrange financial affairs, possibly obtain public assistance and then avoid a later claim for reimbursement for any public assistance that was obtained. Waiting until a person is already in dire financial straits before addressing the financial issues is simply reacting, not planning. Planning sooner rather than later creates more available options and more effective planning.