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Importance of a Long Term Health Care Plan on the Farm

December 20, 2016

There comes a time in everyone’s life where they can no longer function in the same manner than in their earlier years. While this can be extremely sad for a family, it can also be financially devastating as well. Not only does the family farm need to have a plan regarding who will maintain and oversee the daily activities on the farm, but there needs to be a plan in regards to how the medical bills are going to be paid. At Dunncreek Advisors, we believe that investing in insurance such as a long term health care plan can take the financial burden off of your family and farm when this stage of life occurs.

Overlooked Insurance

Sure, most everyone insures their home and car, but a lot of us fail to put much insurance on the most important part, ourselves! Studies have shown that only 2.5% of the American population has invested in long term health care insurance. Additionally, the U.S. Government Administration of Aging (AOA) found that there is a 70% chance that long term health care services will be needed after turning age 65. When you are creating that legacy plan for the farm, don’t overlook the conversation around long term health care insurance as it could have a very positive impact on your farm and family.

Benefits of a Long Term Health Care Plan

Just like with all insurance plans, there are benefits to maintaining a long term health care plan. These benefits include the following:
Protection - Residential long term health care services can be in the $60,000-$70,000 ballpark per year. Unless you have made a fortune and have excess dollars saved up, these types of expenses over a few years could quickly become detrimental to everyone involved. Through a long term health care plan, this threat can be minimized for your surviving family.
Less Family Stress - Many families do not put a price tag on what it costs to keep a family around. They simply work together to collect as much money as possible to help with the medical expenses. This can become a burden that causes stress across the family. A long term health care plan can reduce that stress!
At Home Assistance - A lot of long term health care plans have in-home assistance to allow for the aging individual to spend more time at home, rather than in a residential facility.
Top Quality Care - With this type of long term health care plan in place, the care often gets boosted because there is no concern about whether or not the services will get paid.
Many More!
If you fear that your family farm cannot withstand the risk of having to pay residential long term health care services out of pocket, then it is time to consider some insurance. A long term health care insurance plan can help make this stage of life easier for not only yourself and your family, but also the family farm.
If this article has you starting to think about your health care situation, get in touch with my office at rdunn@dunncreekadvisors.com. I always enjoy meeting with people who have started thinking about their future. Dunncreek Advisors does not provide legal or tax advice, not is this article intended to do so.