With many states and school districts in the nation looking at changing how teacher’s retirements are funded, planning for Long Term Health Care costs is even more important now than ever before. It is an essential part of an overall retirement plan since health insurance and Medicare will not pay for most Long Term Health Care costs. This leaves whatever future retirement a teacher may have in addition jeopardy because of the financial risks.
I had the opportunity to address teachers in Oklahoma. I help teachers throughout the country and they all are concerned with this topic. Teacher’s defined pensions are under microscopes not only in Oklahoma but across the country. While I won’t debate the merits of defined pensions as opposed to a defined contribution program (like a 401k), the bottom line there will be continued pressure by states and school districts throughout the country on how best to provide retirement for our teachers.
No matter which retirement method a teacher may have, Long Term Health Care is still the biggest involuntary risk teacher’s face in enjoying their future retirements. They can’t and should not depend on a state or a district to provide them with help in this area.
The US Department of Health and Human Services says that if you reach the age of 65, you will have a 70% chance of needing some form of Long Term Health Care. A majority of care is custodial in nature. This means help with activities of daily living or supervision due to a memory issue of some type. This is not paid for by any health insurance plan or by Medicare or Medicare Supplements. Since the cost of care is high, teachers, just like the rest of us, need to plan and they need to plan well in advance of retirement.
Premiums are based on age and health at the time of application. The younger you are, the less expensive it will be. Generally we have better health when we are younger so you want to be able to take advantage of the much lower premium and better health. Plus, Long Term Care, because of the advances in medical science, is no longer just something that happens with older people. A Georgetown University study shows that 43% of all Americans use receive Long Term Health Care are under the age of 65. The problem … it is hard to die. This means, however, more people at younger ages who need help with every activities of daily living.
Long Term Care Insurance is very affordable. For me, most of my clients are in their 40’s and 50’s and see this as an important step in their retirement planning. But remember, a Long Term Health Care event can occur at any age. While we hope it happens when we are much older, it is not always the case. These medical advances allow us to survive health events and accidents more now than ever before. However, many times it means we need help with our daily living activities.
Long Term Care Insurance is an affordable way to plan for the physical, emotional and financial burdens Long Term Health Care has on loved ones. It is a key part of retirement planning for teachers and other Americans.
One in three seniors will have some type of cognitive issue according to the Alzheimer’s Association. People require Long Term Health Care because of accidents, illnesses and the impact of aging. Dementia and memory issues are just one of many reasons people require care. The advances in medical science make us more likely to need care at some point and this cost is high. With questions on how teacher’s retirements will be funded in the future, planning on Long Term Health Care is an easy and affordable way for a teacher to help themselves and their families now.
In my 16 years of experience in Long Term Health Care Planning I have seen firsthand how these plans get used at the time of claim. A Long Term Care Specialist, like myself, assists individuals to determine if Long Term Care Insurance is suitable, if the person health qualifies for coverage and then helps them shop for the best coverage at the best value.
If you want to learn more about Long Term Care Planning you can contact the American Association for Long Term Care Insurance at http://www.aaltci.org/. You can also go to my website at http://mccannltc.net/. If you just want free quotes on plans from the top insurance companies you can get those at http://radioltc.com/.
Teachers need to start protecting their retirements now no matter what happens to the pension plans.