Episode 60: How To Plan For Long Term Care Needs

Today’s Prep:

While it’s not a fun topic to consider, long term care is an important part of a financial plan. Do you know how you plan to address long term care needs?

(Click the featured times below to jump forward in the episode)

Equipping Points:

Long term care is an important element of your financial plan. Statistics say 65-70% of us are going to need long term care, so if you don’t account for it in your retirement then a need for it could really do some damage to your financial plan.

Consider this: long term care in Kansas and Missouri runs about $70,000 a year today. With inflation, it will likely be a lot more expensive by the time you need it. If both you and your spouse end up needing it, that could add up significantly.

Long term care insurance is a tricky topic that causes a lot of concern for people. If you use it, it might a really good investment. On the other hand, if you never use it then you lose out on the costs of the premiums. The insurance company may have built in a lot of rules that prevent you from using it when you need it, so it’s important to find coverage with a reputable long term care insurance company and get a good plan.

On this episode of Cover Your Assets KC David talks about different ways you can protect yourself against long term care costs. Whether that’s through long term care insurance, self-insuring, or even through an annuity or life insurance, you’ll want to have some sort of plan in place should you need long term care in retirement.

Finally, in the mailbag today, David answers a listener question about the rule of 100. What’s the rule of 100? And does David agree with this concept?

Find out by listening to the entire episode or click on the timestamps below to hear the answers to these questions pertaining to long term care and the rule of 100.

[0:12] – How important is long term care?

[1:10] – How realistic is it for someone to self-insure?

[2:30] – What are the pros and cons of long term care insurance?

[4:47] – How can you protect yourself against long term care expenses?

[8:39] – Mailbag: What is the rule of 100?

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The host: David Dickens

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