Many Houston residents neglect to plan for the difficulties of aging, because thinking about needing nursing home care or other long term care services is not pleasant. However, it is very important and those who fail to plan for these things sometimes end up in financial ruin.

As the American life expectancy increases, so do the costs involved with living longer. About 70 percent of those over 65 require long term care, either in a nursing home or assisted living facility, or simply at home with an aide who can help with daily activities.

Such care is very expensive. Nursing home care can cost between $75,000 and $100,000 annually, and according to a 2011 MetLife Survey, the average cost for a home health aide is more than $21,000 per year.

Because each person's needs and finances are different, it is important to consult with your own estate planning attorney about long term care options. The following are several things to consider:

Medicaid: Medicaid is typically reserved for low-income individuals. Medicaid covers medical needs in Medicaid-approved facilities, such as nursing homes. Those who have sizeable assets would need to transfer these or spend them to qualify for Medicaid.

Medicare: Medicare covers medical needs, but not day-to-day activities like dressing and bathing, which many elderly people need assistance with.

Life Insurance: Some policies offer accelerated death benefits which allow you to use life insurance to cover long-term care.

Long-term care insurance: Long-term care insurance is a way to cover long term care expenses without needing to spend down your assets. This is generally only suggested for those with assets of more than $50,000. Long-term care insurance covers home health care and gives you more options about where to receive care. However, it is difficult to qualify for this insurance if you are displaying signs of a condition that may require long-term care and premiums are strongly influenced by your age. In general, premiums will remain more manageable if you get a policy before you are 60. Very young policy holders may be wise to consider paying for inflation protection, which raises the cost of your premium, but makes it more likely that the policy will better cover the increasing costs of long term care providers.

It is important to make arrangements that suit your personal needs and finances. It would not be wise to sign up for policies that you will not be able to afford after retirement.

Source: Business Insider, "Keep These Factors In Mind When Shopping For Long-Term Health Insurance," Susan Johnston, Feb. 10, 2012