"Nobody wants to be old … and life goes faster than you think."

With more people expected to need long-term care and nursing homes starting to crowd over, we need to approach these subjects differently. Among the issues for retiring Baby Boomers is trying to afford long-term care without depleting all of their retirement funds. Some policy holders of long-term care insurance have been getting notices that their premiums are going up—in some cases 40 to 60%.

When people purchased their policies 10 to 15 years ago, nursing home costs were about $150 or $200 a day; now typical costs are closer to $400 a day, or $12,000 per month.

The expense incurred by the insured going on claim has caused the long-term care insurance industry to downsize. Those companies still offering policies are bumping up the premiums amid the rising cost of long-term care.

What the middle class doesn't know is that there is no plan for them. They can get their Social Security and use Medicare. They may believe that they're covered for old age, but it won't be enough. A long-term care policy must also be kept and not allowed to lapse.

The high cost of long-term care can result in many folks relying on family members. These people struggle to handle their jobs and care for their parents at the same time. And in the event that issues develop that put a person beyond home care (like dementia), the patient will end up facing astronomical healthcare costs. In many cases, the only other option is Medicaid, which covers the cost of care when an individual becomes financially eligible which varies somewhat from state to state with certain federal requirements. An elder law attorney can help you determine whether you are eligible.

Whether you need a long-term care policy and can afford it depends on a family's health history. But like anything else, it's insurance—it's a hedge: you may not ever use it. When you look at the numbers, even with increased policy premiums, you're still going to be better off at the end of the day by having it.

People frequently don't take the time to speak with aging parents about making a plan for future care because it is an uncomfortable topic. But the tragedy is when everyone has to scramble in a crisis. Make the time to speak with your aging parents and then meet with an elder law attorney.

For more information about estate planning, please visit my estate planning website.

Reference: Buffalo Business First (November 23, 2015) "Finding ways to afford long-term care"