Solutions for Baby Boomers' Long Term Care

Long Term Care

Long Term Care

Baby Boomers have to make sure that they have purchased enough insurance to cover escalating costs, or they may not be eligible for a long-term care policy.

By:Richard Jacobs

Coming of age the Baby Boom Generation is now or soon will be part of the senior generation.

Supposedly a majority of the Baby Boom Generation having enjoyed a comfortable lifestyle would very much like this to continue in retirement. Expected to live longer than the previous generations, thanks to the medical progression, they would still face challenges of outliving their savings.

The increased cost of living, low returns on investments, increased medical costs are the issues they may be worried about if they are persistent in maintaining their current lifestyle.

Baby Boomers grown accustomed to middle to high income levels, have given less thought to the post retirement care costs, the cost not covered by medical insurance and social security like lifestyle and housing.

So now is the right time to plan, for that inevitable elderly care or senior living, and set aside a just proportion of their accumulations to maintain their desired standard of living and also provide for a dependant.

Following are some options by which the Baby Boomers could ensure acquiring the desired quality care in addition to soften the burden off a spouse or other loved ones in case of some financial crisis.

Sufficient Funds for “Quality Care”

The hard earned accumulated wealth by the Baby Boomers in investment and retirement funds basically serves two purposes. First is to ensure the availability of sufficient funds during their own life time or that of a surviving spouse. The second being the availability of enough funds as to ensure, that they acquire long term quality care for themselves and their spouse.

Most Baby Boomers prefer in home care or senior living to a nursing home, these two options not covered by medical insurance cost something like $200,000 to $250,000 a year.

The long-term care policies can provide some much-needed relief. With premiums often subject to increase, Baby Boomers have to make sure that they have purchased enough to cover escalating costs, or they may not be eligible for a long-term care policy due to their existing health condition. There are some new options for long-term care policies, which allow the return of principal or include life insurance protection, they have to discuss these options with their CPA and their estate planning attorney to see if any of these new options are right for their situation.

The cost evaluation of in home care or senior living needs some serious advance planning, this allows the Baby Boomers to cover the issues concerning long term care, in case they or a loved one died prematurely, will the surviving spouse or other loved ones:

– have enough money to continue their comfortable lifestyle?

– spend down their money without adequately providing for their own long-term care?

– spend down hard-earned money to cover their own or the spouse’s long-term care, leaving little or no money for other loved ones?


To be sure that Baby Boomer are adequately provided for future long-term care needs, they need to review the following aspects in consultation with a life care management specialist, an estate planning attorney, certified financial advisor and , their CPA.

Understanding of the differences in costs and advantages/disadvantages of private in-home care and senior living by a life care management specialist, as needs change over time, the life care management specialist can help make the necessary adjustments to ensure safety and quality of life care.

Full investment/insurance reviews to ensure that investment and insurance portfolios are structured in a manner that will optimize the ability to afford quality living and care options. A team of an estate planning attorney, a long-term care management specialist, a life and long-term care insurance advisor working together, will likely result in a plan that provides with the best care possible, and also significantly reduce costs associated with long-term care.

Keep reviewing and updating the estate plan. The new federal estate tax laws, provide planning opportunities to save taxes through successive generations, an individual may now make tax-free gifts of up to $5 million.

Set up an asset protection trust, for a spouse, other loved ones, children or grandchildren. These trusts can be designed to be tax-efficient, and also provide liquidity for loved ones on an “as-needed” basis meanwhile protecting the hard-earned money from creditors and spouses in the event of a divorce.

The Baby Boomers having knowledge of the challenges their aging parents faced, fear spending their own elderly years in some institutional nursing home. But due to proper planning and expertise of competent professionals, these fears can be lessened and the desired goals can be achieved.

About the Author:
Richard Jacobs is a chief editor since early 2007, and he currently works for MyDUIattorney. A website that helps you to find the right DUI lawyer, you can search for a Best New York DWI Lawyer or for Temple DUI Lawyer on line anytime.

Photo: 1pmhomecr1