Planning for long-term care during a recession can be incredibly overwhelming, and continuing to pay for long-term care during a recession can be even more intimidating. If you or a loved one is thinking about purchasing long-term care insurance during this time of looming recession, it’s important to know how the next few months or years might affect you going forward and what steps you can take to get ahead of the curve.
How Can I Prepare for a Recession and Save More Money?
It can be hard to know what to do to effectively plan for a recession, especially if you’re already retired and concerned about long-term care. Long-term care only makes sense for the price of long-term care insurance to rise during a recession.
Annual premiums vary from person to person and depending on your age, health, and policy you could be paying up to $5,000 in long-term care premiums every year. There are ways to reduce the costs of long-term care that might be helpful as we enter into a recession:
- Take advantage of shorter benefit periods: Not taking advantage of purchasing a lifetime policy can mean paying higher premiums later on in life. The American Association of Long-Term Care Insurance does also state that a three-year benefit policy is what most people find the most helpful.
- Purchase long-term care insurance premiums younger: While you can’t go back in time, if you’re looking into long-term care insurance, buying sooner rather than later might be better. The younger you are, the cheaper your premiums are going to be.
- Purchase a shared care policy: If you and your spouse are looking to purchase long-term care insurance, sharing a policy can mean spending less money. You’ll be able to buy shorter policies and have more time in your policy.
- Inflation protection: If you’re purchasing long-term care before your early 60s, you also might consider purchasing compound inflation protections, this will increase the value of your benefits to keep up with inflation which will help you in the long run.
If you’re wondering whether or not you need to start preparing for a potential recession, Somekh & Associates can help. It’s always better to have a plan when it comes to long-term care planning. Visit our website or contact us at (718) 740-3300 to schedule a free consultation with our elder law attorneys.