Long Term Care and Estate Planning
Long term care is effectively the crossroads between your estate plan and your health care directive. Generally, consumers overlook the value of adding long term care insurance into their estate planning process. Because asset protection is one of the prime motives in estate planning, be sure to consider the difficulties that can arise with a long, expensive illness.
When you have significant assets, a chronic, debilitating (but not acutely life threatening) illness can drain your retirement finances. Such an illness can use the entirety of your health insurance policy; you might have to use personal finances to supplement the cost of care beyond the limit of your health plan.
A long term care policy ensures that those additional costs will not affect your personal finances. The best time to buy a long term care policy is generally in your 50s. Because many people create or significantly alter their estate plans at the same time in life, ask your lawyer about adding a long term care insurance policy into your plan.
Because you should also use an estate planner to create a health care directive, you can review health care choices that might be applicable to both long-term care issues and end-of-life choices.
You can also consult with an insurance agent or investment advisor to coordinate your personal and job-issued life insurance policies. Coordinating your estate plan, life insurance, and health care directive is complicated and time consuming. Don’t try to manage the issues without help.