Episode 46: What You Need to Know About Long-term Care


An estimated 52 to 70 percent of people who reach age 85 will eventually need some form of long-term assistance with daily activities such as feeding, washing, dressing, and mobility. The costs of professional long-term care can grow to several hundred thousand dollars a year—potentially draining your retirement assets or family members’ resources.

Long-term care (LTC) insurance is one way to help ease the burden and safeguard your savings. However, there are many factors to consider before you choose a policy. In this podcast episode, host Doug Fabian and guest David Haman, a Certified Financial PlannerTM in the Philadelphia office of Mercer Advisors, discuss:

  • The types of LTC support that people often need as they age, from in-home rehabilitation services to a full-time care facility
  • The cost of LTC services, which can vary dramatically depending on the level of care required and what state you live in
  • The various forms of LTC insurance, different options for customizing your benefits, and monthly premium amounts you can expect to pay
  • The tax implications of purchasing LTC insurance, including potential deductibility of the premium costs and taxability of LTC benefit payouts
  • How soon to start considering LTC insurance, and how your expected net wealth in retirement may influence the decision

David also explains why people should start by sitting down with their wealth management advisor to create a financial plan, which can help reveal whether a “long-term care coverage gap” exists and what other estate planning options may be helpful.

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