Planning for long-term care is one of the most important parts of your financial wellness. It’s about protecting your independence, supporting your family, and preparing for future health care needs.
As health care costs rise, many adults in Maryland are thinking about how to save for long-term care, either for themselves, a spouse, or aging parents. November is both National Long-Term Care Awareness Month and open enrollment season. Here are five steps you can take to review your health care coverage, savings plan, and future care goals.
Step 1: Understand what long-term care really means
Long-term care includes support for daily activities such as dressing, bathing, and meal preparation, as well as assisted living, rehabilitation, or skilled nursing care. It’s designed to help you maintain quality of life and independence when you or your loved ones need extra help.
According to the U.S. Department of Health and Human Services, about 70% of people over age 65 will need some type of long-term care. While you may not be at retirement age yet, knowing these costs could come in the future makes now the perfect time to start saving.
The cost of care can vary widely based on the level of support and where it’s provided. Preparing now helps you create a realistic plan that balances care preferences, family involvement, and long-term financial stability.
Step 2: Review your coverage during Maryland open enrollment
Open enrollment season for Maryland residents is the best time to review your health care coverage and make sure your plan fits your current needs. Medicare and many private insurance plans do not cover long-term care, so understanding your coverage now helps you avoid gaps later. Ask yourself questions like:
- What home health, rehabilitation, or nursing services are included in your coverage?
- Are your preferred doctors, specialists, and facilities still in-network?
- Is supplemental or long-term care insurance available through your employer or the Maryland Health Connection marketplace?
This is also a good time to use or increase contributions to a long-term care savings account, health savings account (HSA), or flexible spending account (FSA). These accounts allow you to set aside pre-tax funds for qualified medical costs. HSAs in particular can grow tax-free and be used to pay for health care or caregiving expenses.
Step 3: Create a financial plan for future care
Financial planning for long-term care takes time. But small, consistent steps can make a big impact.
Start by setting aside funds specifically for health care and caregiving needs. Even modest savings can help offset larger expenses. Consider savings options that work best for your needs.
- Share savings account: A safe, insured place to keep money for near-term medical costs and unexpected expenses.
- Money market account: Earns higher dividends than standard savings while keeping your funds accessible when you need them.
- Certificates of deposit (CDs): Offers guaranteed growth at fixed rates, ideal for planned medical procedures or future care expenses.
If you’re exploring insurance options, it pays to start early. Long-term care insurance premiums are typically lower at younger ages, and some hybrid policies combine life insurance with care benefits.
Together, these tools form the foundation of a long-term care financial planning strategy that gives you flexibility, security, and peace of mind.
Step 4: Talk with your family about what you want
Open, honest conversations about future care help prevent confusion down the road. Talking with your loved ones about preferences, financial responsibilities, and available resources ensures everyone is on the same page. Consider things like:
- Where you’d prefer to receive care (at home, assisted living, or a facility)
- What savings or insurance options you already have in place
- How family members can help coordinate or manage care when needed
Step 5: Revisit your plan each year
Life and health care needs change over time. Reviewing your plan annually helps ensure it aligns with your goals and budget. During open enrollment or your yearly financial check-in, take time to review your plan.
- Reassess your insurance coverage and update as needed.
- Adjust contributions to your HSA, FSA, or savings accounts.
- Review CD maturity dates to ensure funds are available when required.
Even small updates like increasing savings transfers or confirming your provider network can help you stay prepared for future care needs. Consistency and flexibility are key to building lasting confidence.
Plan with confidence for your future care
Planning for long-term care is an investment in your well-being. It helps you stay independent, reduces stress for loved ones, and ensures that when care is needed, you have options.
Our savings and deposit accounts are designed to help you plan confidently, from building a long-term care savings account to managing everyday health care costs. Whether you’re preparing for your own future or helping a loved one plan for theirs, we’re here to help you take the next step with confidence.
