Are you prepared for the possibility of needing long-term care in the future? This may include care in a nursing home, an assisted living facility or home health care.

According to the American Association for Long-Term Care Insurance, more than half of women over age 65 will require some form of long-term care at some point. For men 65 and older, that figure is about 39%. Some estimates suggest the percentage could be even higher.

[READ Long-Term Care Facilities: Types and Costs]

Why Plan Ahead for Long-Term Care?

The cost of long-term care in the U.S. can vary by region and the type of care provided, but the median monthly cost is $5,900 for an assisted living community to about $10,600 for a private room in a nursing home facility, according to CareScout.

“Life expectancies are rising, medical costs are rising and the length of time spent in care settings is rising as well,” says Chris Rivers, a certified financial planner and a principal with Armstrong Fleming & Moore, a financial planning firm in Washington, D.C. “With advances in medical technology and changing behaviors, it’s much more common for folks to need several years of skilled nursing care.”

There’s a common misconception that Medicare will cover the cost of long-term care. A 2024 University of Michigan poll found that 62% of adults age 50 or older believe that Medicare handles long-term care costs. However, the truth is that Medicare doesn’t cover long-term care, and neither does private health insurance.

With costs like these, many financial experts advocate planning for long-term care costs early on.

“Planning ahead gives you more control, more choices and a better chance of protecting what you’ve built,” says Chad Druvenga, founder and CEO of CBS Brokerage in Shakopee, Minnesota.

Here are some steps you can take to start planning now for future long-term care needs.

9 Tips to Plan for Long-Term Care

Here are nine tips to plan ahead for long-term care:

1. Start at the right age

2. Begin decluttering in preparation for a downsizing

3. Discuss plans with family

4. Consider what funds you already have for long-term care

5. Pick a financial option

6. Ask for help if needed to review financial and care options

7. Make sure you have other end-of-life and estate planning paperwork in order

8. Shop around for long-term care options

9. Review your plan every couple of years or as life circumstances change

1. Start at the right age

“The ideal window (for long-term care planning) is from your early 50s through your late 60s,” Druvenga says. “During this time, most people are still healthy enough to qualify, and premiums are more manageable.”

The earlier you start, the more options you have in terms of affordable long-term care insurance.

You may want to link long-term care planning to any retirement planning tasks.

“Planning for retirement involves not only financial planning but also planning for care that will be needed when needs increase,” says Yelena Sokolsky, founder and CEO of Galaxy Home Care of New York City. Many families are unprepared for how quickly an older parent can decline in physical and mental abilities, she adds.

If you’re an adult child, chat with your parents about long-term care if they haven’t brought it up. It may be useful to get the ball rolling and know what plans are (or aren’t) in place.

You also may assume as an adult child that you will handle your parents’ caregiving in the future. This may or may not be possible, depending on their health. Giving yourself a break by asking for help with care, even temporarily, could bring you and your loved one closer by handing off some responsibilities to a professional, Sokolsky says.

[READ: How to Pay for Senior Living]

2. Begin decluttering in preparation for a downsizing

Long-term care options will often be smaller in size, and the process of decluttering so that all of your stuff fits into a smaller space can be an emotional one. As you’re able to, start to donate or get rid of items you no longer need.

To help with this process, consider:

— Digitizing memories by taking pictures of papers or objects before getting rid of them

— Starting to sort, organize or categorize important papers to make it easier to decide which ones you’ll keep

— Focusing on the things that you will need when you move, and start by identifying those necessities

3. Discuss plans with family

Family members can support you through the process of transitioning to long-term care. Discuss what you’re thinking about with your partner, children or other family so that they can provide support if and when they’re able to. Keeping everyone in the loop can make the process easier.

Your community is your support, so don’t be afraid to lean on others for emotional or practical help during this process.

4. Consider what funds you already have for long-term care

Druvenga recommends “stress-testing” your retirement plan. To do this, ask yourself “If you needed $8,000 to $10,000 for long-term care, where would it come from? What assets would you need to tap into first? How long would the funds last?”

“Most people don’t like the answers,” he says.

This is when you would get serious about figuring out how to pay for future long-term care.

[READ 7 Myths About Caregiving and Home Care Costs]

5. Pick a financial option

There are typically four options to pay for long-term care:

— Funding it yourself

— Using a government program, but keep in mind that Medicare’s use within long-term care is limited and Medicaid only applies if you’ve spent down your assets

— Long-term care insurance

— Linked-benefit or hybrid insurance products that bridge together life insurance or annuities with long-term care coverage

With hybrid policies, you have a life insurance plan or annuity that also can provide long-term care benefits if you need them. If you don’t need them, your heirs still receive benefits when you die. With a hybrid policy, you may have to pay accelerated premiums in about 10 annual installments instead of stretched over your lifetime.

“The tradeoff is that you have some certainty that if you don’t need long-term care, there will be money back for your heirs,” Rivers says.

Hybrid insurance policies have become popular. They are typically two to four times more expensive than traditional life insurance.

You often can get a basic long-term traditional or hybrid insurance quote online using just your name, date of birth and ZIP code, Rivers says. “While this won’t be your actual cost as that depends on your medical exam, it will give you a ballpark idea of what costs will be.”

Keep in mind that premiums typically increase with age and inflation. Find a policy that fits your budget and has some room to spare.

6. Ask for help if needed to review financial and care options

If you’re not sure which option is the best for you from a financial perspective, a financial advisor who has knowledge about long-term care plans can help, Druvenga says. “Long-term care isn’t just a line item, it’s a risk multiplier. It affects income, taxes, legacy goals and family dynamics,” he explains.

From a care perspective, many insurance carriers now have concierge-style coordination services to assist when you actually need long-term care.

“These platforms are a game-changer,” Druvega says. “They help families find vetted care providers, coordinate services and make informed decisions during what’s often a stressful time.” That type of support can be as useful as the actual financial benefit, he adds.

7. Make sure you have other end-of-life and estate planning paperwork in order

Although it’s not fun to handle end-of-life paperwork, it’s an important task that will save your heirs some headaches. These include:

— A health care directive. This lets your loved ones know how you’d like certain health decisions handled if you can’t make them yourself. These are also called an advance directive or a living will.

— Power of attorney. This states who can make legal, financial or health care decisions for you if you can’t do so. Give some real thought to who you want to have in this role. “This will eliminate ambiguity and make decision making as easy as possible in the event you can’t do it yourself,” Rivers says.

— A will. If you already have one, consider any revisions you’d like to make.

These documents may dovetail decisions to be made if or when you’re in long-term care.

Let your loved ones and attorney, if you have one, know about these documents as well as any specific wishes you have regarding long-term care.

If you get a long-term care insurance policy of any kind, designate someone that the company can contact if you miss a premium payment.

“This is a good backup to have in case you become incapacitated or simply forget to pay the bill,” Rivers says.

8. Shop around for long-term care options

To take things a step further, you can identify what exact type of long-term care you’d like depending on your reason for needing it. For example, do you want in-home care? Assisted living? A nursing home facility? Here are a few steps from Sokolsky to help evaluate local care options:

— Speak with licensed registered nurses or certified caregivers in your area

— Ask family or friends for recommendations

— Ask or check on local Facebook groups for facilities or home care services that are well liked by others

No matter what preference for long-term care you have, Sokolsky says to remember two important components: socialization and an organized daily routine. A support group of close friends and family members will go a long way toward emotional health, and a daily routine will help maintain a normal life, especially if you experience cognitive impairment in the future.

9. Review your plan every couple of years or as life circumstances change

“Revisit it every few years,” Druvenga advises. “Health changes. Laws change. Your family changes. A strategy that worked at 55 may need to be adjusted at 65 or 75.”

A regular review of your long-term care plan can help protect your independence and your assets, he says.

Bottom Line

Long-term care isn’t something that always comes to mind when you’re saving for retirement, but planning ahead for it can allow you to access care that you need later in life.

In addition to financial planning, create an aging plan by making sure you have documents in order and consider logistical elements, like decluttering. And, if you can explore long-term care options to get a sense of what’s available before the situation becomes urgent, you’re likely to have a better outcome.

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9 Steps to Plan Ahead for Long-Term Care originally appeared on usnews.com

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