Introduction:
Long-term care is a recurring concern for retirees about how to cover their long-term healthcare needs in life. Long-term care insurance can be costly, and you may never need it. So should you buy it? Before making this decision, you should be aware of the other options available to you. Here are four ways to cover long-term healthcare needs without insurance:
Prepaying for Care
One alternative to purchasing a traditional long-term care insurance policy is to join a continuing care community. With these arrangements, you usually pay a substantial upfront amount to secure your place, and then pay monthly fees once you move into the community. Many of these communities are designed to be inclusive, meaning that in exchange for the upfront amount and monthly fees, you will receive any level of medical care needed. The idea here is that you have prepaid and locked in your costs.
There may be significant tax advantages to joining a retirement community that offers lifelong care benefits, but there are also risks. Some facilities have faced financial issues, and promises of lifelong care have not always been fulfilled. Review how to choose a care community carefully before investing. Remember that this option may cost significantly more than a traditional long-term care insurance policy.
Living in a Community
As time goes on, we will lose many loved ones, but this shouldn’t prevent us from forming new relationships with others. For seniors, creating and fostering new relationships can significantly improve their quality of life, and living in a community can aid in this process.
When choosing this option, you may discover some amazing possibilities that become available to you. You can choose to live with friends or family in a place of your choosing and pay for the services you need, such as cleaning, cooking, and even a visiting nurse if necessary. Sharing costs can allow you to maintain control and live in an environment of your choice while sharing life experiences with old or new friends.
Planning Ahead with Family
If your family is the type that always takes care of its members, you should discuss long-term care with them openly. Have real discussions about what that means and whether it will work for everyone. If so, review the financial arrangements and ensure that everyone knows their role.
You might consider covering the costs of an addition to a family member’s home as a place you will eventually move to. Perhaps a family member can add a guest house or an attached unit that can be rented out until you live there. Remember that you may also need in-home medical care later in life, so you should have funds set aside to cover that. You also want to ensure that your future living space is accessible.
If you have covered the costs of additions to the home and they are rented out, the rental income can be earmarked to help cover any required in-home medical care later on. Any arrangement that works for you and your family can be discussed.
Moving Abroad
Medical tourism is on the rise globally. Many Americans are going overseas for various surgical procedures, but you might also consider living abroad as a permanent solution to your long-term care needs. In some cases, the availability of care options in terms of cost outweighs the downsides of making it logistically happen. In addition to cost, the culture in some countries may be more accommodating to elderly individuals who require more hands-on care. This is particularly true in countries like Japan and China, where there is an emphasis on respecting and caring for the elderly in the community. In fact, many consider it a duty.
And for
For those suffering from terminal illnesses, there are countries (and now some U.S. states) that allow you more freedom in how to spend the last months of your life. For some individuals, this may be an important factor in where to go for long-term care services. Palliative care – an approach aimed at providing comfort and improving the quality of life for people nearing death – is heavily emphasized in the United Kingdom, where it has been integrated into their healthcare systems. New Hampshire, Vermont, Rhode Island, and Delaware lead the list of the best palliative care in the United States.
Sources:
– Internal Revenue Service. “Publication 554, Tax Guide for Seniors 2020,” Page 25-27.
– Global Market Insights. “Medical Tourism Market Size by Application, Industry Analysis Report, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027.”
– GOV.UK. “Palliative and End of Life Care.”
– Center to Advance Palliative Care. “America’s Care of Serious Illness, 2019 State-by-State Report Card on Access to Palliative Care in Our Nation’s Hospitals.”
Source: https://www.thebalancemoney.com/alternatives-to-long-term-care-insurance-2388726
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