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4 important long-term care decisions to make before age 60, experts say
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Nearly three-fourths of adults 65 or older will need some sort of long-term care at some point during their remaining years, statistics show. But, unfortunately, this care can come with jaw-droppingly high prices — it costs, for example, over $100,000 per year on average for a private room in a nursing home — and Medicare isn’t much help.
For these reasons, it’s important to plan ahead for the costs. Before you hit 60, you should have some important long-term care decisions made — including how you’ll cover the costs of that care.
Learn more about your long-term care coverage options online now.
4 important long-term care decisions to make before age 60, experts say
Are you closing in on age 60? Here are the questions you need to answer fast:
What products you’ll need
There are lots of options when it comes to paying for long-term care. While you can use retirement accounts to cover the cost, that can reduce your nest egg significantly — and fast.
You’ll likely want to consider annuities, life insurance riders, health savings accounts, or a long-term care insurance policy instead. The latter is specifically geared toward long-term care needs.
There are other options, too, according to Chris Orestis, president at Retirement Genius.
“If they own a life insurance policy they could cash it out through a life settlement and use the funds for care,” Orestsis says. “Or they can consider a reverse mortgage, home equity loan, or senior bridge loan to draw down on their home’s value to pay for care.”
Start your search for the right long-term care insurance policy here.
What facilities you might consider using
You should also decide what services and facilities you want to use as you age. For one, the cost of in-home care, assisted living communities and nursing home facilities vary widely.
On top of this, long-term care insurance policies typically stipulate which services you can use, so if you’re going this route, you’ll want to be sure your policy covers the right options.
“Some long-term care solutions limit home health care vs. facility care or offer reimbursement benefits vs. cash indemnity-style benefits,” says Joseph Gaj, director of insurance at Wealth Enhancement Group. “It’s important to pick the product type that fits your needs best.”
When you can pull the trigger
Once you decide how you’re going to pay for your long-term care needs, the next step is to determine when you can pull the trigger on setting up or purchasing that solution. With long-term care insurance policies, for instance, the earlier you can act, the better.
“The younger and healthier a person is when they apply, the easier to obtain and the less expensive long-term care insurance will be,” says Brian Gordon, a long-term care advisor and president at Gordon Associates.
That’s because long-term care policies require medical underwriting. And the older you get, the more likely you are to have health problems — and need to file a claim.
“The sweet spot to buy a long-term care policy is age 60, assuming someone is at standard health or better,” Orestis says. “Almost 80% of long-term care coverage is purchased by people between the ages of 50 to 69.”
What company you’ll use
If you do opt for a long-term care insurance policy, you should start doing your research. Not only can this help you find the best policy and provider for your needs, but it could save you cash.
“Look for companies that give discounts,” says Rhonda Vry-Bills, an instructor with Certification for Long Term Care. These often include partner discounts (for getting a policy with your spouse) and discounts for maintaining good health, she says.
You should also consider a company’s financial solvency and check its rating with rating companies like A.M. Best, Standard & Poor’s, or Moody’s Investors Service. You want to be sure they’ll be around to cover claims — even decades down the road.
The bottom line
And, it’s important that you try not to go at it alone. If you want the best coverage, premiums and provider, talk to a professional. They can help you determine the right moves for your needs and money.
“Work with a long-term care specialist,” Bills says. “They will assist you in shopping out all strategies — not just one company or one strategy.”
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Wisconsin school shooter was in contact with California man plotting his own attack, court documents say
The shooter who killed a student and teacher at a religious school in Wisconsin brought two guns to the school and was in contact with a man in California whom authorities say was planning to attack a government building, according to authorities and court documents that became public Wednesday.
Police were still investigating why the 15-year-old student at Abundant Life Christian School in Madison shot and killed a fellow student and teacher on Monday before shooting herself, Madison Police Chief Shon Barnes told the Associated Press Wednesday. Two other students who were shot remained in critical condition on Wednesday.
A Southern California judge issued a restraining order Tuesday under California’s gun red flag law against a 20-year-old Carlsbad man. The order requires the man to turn his guns and ammunition into police within 48 hours unless an officer asks for them sooner because he poses an immediate danger to himself and others.
Carlsbad is located just north of San Diego.
According to the order, the man told FBI agents that he had been messaging Natalie Rupnow, the Wisconsin shooter, about attacking a government building with a gun and explosives. The order doesn’t say what building he had targeted or when he planned to launch his attack. It also doesn’t detail his interactions with Rupnow except to state that the man was plotting a mass shooting with her.
CBS’ San Diego affiliate KFMB-TV reported that law enforcement searched the man’s home Tuesday night after the order was signed by the judge.
Police, with the assistance of the FBI, were scouring online records and other resources and speaking with the shooter’s parents and classmates in an attempt to determine a motive for the shooting, Barnes told the AP.
Police don’t know if anyone was targeted in the attack or if the attack had been planned in advance, the chief said. Police said the shooting occurred in a classroom where a study hall was taking place involving students from several grades.
“I do not know if if she planned it that day or if she planned it a week prior,” Barnes said. “To me, bringing a gun to school to hurt people is planning. And so we don’t know what the premeditation is.”
On a Madison city website providing details about the shooting, police disclosed Wednesday that two guns were found at the school, but only one was used in the shooting. A law enforcement source previously told CBS News the weapon used appears to have been a 9 mm pistol.
Barnes told the AP that he did not know how the suspected shooter obtained the guns and he declined to say who purchased them, citing the ongoing investigation.
No decisions have been made about whether Rupnow’s parents might be charged in relation to the shooting, but they have been cooperating, Barnes told the AP.
Abundant Life is a nondenominational Christian school that offers prekindergarten classes through high school. About 420 students attend the institution.
The Dan County Medical Examiner’s Office identified the two people killed Wednesday as 42-year-old Erin West and 14-year-old Rubi Vergara.
An online obituary on a local funeral site stated Vergara was a freshman who leaves behind her parents, one brother, and a large extended family. It described her as “an avid reader” who “loved art, singing and playing keyboard in the family worship band.”
West’s exact position with the school was unclear.
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