Mistakes and Tips Every Boomer Should Consider | Blog

For many boomers, long-term care needs short-term attention. Seventy-seven million of them will become senior citizens during the next 18 years, bringing more focus to how they will be cared for and pay for care in their twilight years. Long-term care insurance is an option, but the market is undergoing changes. Twenty-one major insurance companies no longer offer individual long-term care insurance. And todays low interest rates are putting pressure on pricing for existing and new policies.

Miguel Palma, CPA/PFS, at Palma Financial Services, Inc. in Dublin, CA can discuss the importance of long-term care planning and factors to consider when weighing the options. CPAs with the Personal Financial Specialist (PFS) designation have additional expertise and experience helping consumers navigate the complexities of tax, insurance, retirement, investment and estate planning.

What is long-term care insurance?
Long-term care insurance is a policy that will provide services to help the insured when two out of the seven activities of daily living can no longer be performed. The seven activities are:
• Ability to bathe oneself.
• Ability to feed oneself.
• Ability to transfer oneself from one area to another.
• Ability to dress.
• Continence.
• Ability to use the restroom.
• Ability to maintain personal hygiene and grooming.

3 questions to ask when considering long-term care insurance
1. Does your family have a medical history that includes longevity and/or dementia? Do you have family nearby should you need help or are they scattered about the country?
2. Do you know the cost of long-term care insurance and/or do you know the cost of daily care should you need it?
3. Have you included the cost of in-home nursing care or in-home cleaning and maintenance services in your retirement budget?

3 mistakes to avoid with long-term care insurance
1. Failing to insure or budget for the cost of uninsured care in your retirement budget.
2. Not getting the inflation rider on a long-term care insurance policy.
3. Ignoring the issue or thinking it can never happen to me.

3 tips to keep in mind when weighing long-term care
1. The healthier I am as I age the more likely I will need some form of long-term care.
2. Annual costs of long-term care are rising at 3 times the current rate of inflation.
3. After spending a lifetime earning, saving and sacrificing, do you want to see it all disappear in your final years of life leaving nothing for your heirs?

For a free consultation please contact Miguel Palma CPA/PFS by phone: 925-307-5454 or by email: cpa@mpalma.com