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To get yourself cleared for |
Long-Term Care
Finding the Right Balance
We all try to find balance in our lives. Between raising a family and careers, just making time for ourselves can be difficult. But we still try. Even when it comes to financial planning, we have many competing priorities — helping children or grandchildren with college expenses, paying off a mortgage or saving for retirement. But there is something else that we need to make a priority. Something that many of us are not paying nearly enough attention to. Something that is a threat to our financial well-being. To protect our estates against catastrophic issues, we need to plan ahead for our long-term care needs.
Shattering the Long-Term Care Myths:
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If I have a decent sized nest egg, can’t I just pay for long-term care services myself?
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Won’t my health insurance or Medicaid and Medicare pay for long-term care services?
Benefits for Consideration:
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Shared Care Benefit Between Spouses
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Return of Premium
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Payment Option
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Ten-Year Pay
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Pay to Age 65
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Lifetime Pay
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Shattering the Long-Term Care Myths
Is long-term care exclusively an issue for the elderly?
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You may feel that you are too young to think about long-term care. But, sadly, long-term care problems can materialize at any age.
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Approximately 40% of people needing long-term care are between the ages of 18 to 64.
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About one third of the 700,000 stroke victims each year in the United States are under 65.
Because no one can predict when he or she might need long-term care, it is not just a problem for the “older generation.” The younger you are when you purchase a long-term care insurance policy, the more affordable it is likely to be. It is also less likely you will have medical problems that may disqualify you from coverage.
It is important to remember that in most cases, you can’t get long-term care insurance once you have a problem that requires long-term care services. Do not make the mistake of waiting until it’s too late.
Does long-term care mean being put into a nursing home?
When you think of long-term care, the first thing you probably think of is a nursing home. While it is true that long-term care services may be received in a nursing home or assisted living facility, for most of us, it is a last resort.
Today, long-term care includes a much wider range of services. Long-term care services can take place in the home, a community setting or in a facility. Since long-term care is assistance in performing everyday functions such as bathing, eating, and dressing, some people may need it around the clock. Others may need it while recovering from an injury or illness and could involve a caregiver coming into their home several times a week
What are the odds that I will need long-term care?
It’s human nature to be optimistic about how healthy we are going to be but the truth is, as we get older, so do our bodies.
After the age of 65, Americans have more than a 70% chance of needing some form of long-term care.
It is a natural part of the aging process to find ourselves needing assistance with daily life.
If I have a decent sized nest egg, can’t I just pay for long-term care services myself?
Sure, you might be able to pay for it yourself, but quality long-term care is not cheap. In fact, it is very expensive, and for most of us, can drain a lifetime of savings.
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A private room in a nursing home can cost an average of $168 per day, or over $61,000 annually and a visit by a home health aide averages $18 per hour.
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It is estimated that the average annual cost of nursing home care in the U.S. will rise to as much as $190,000 a year in 30 years, and that’s just for one person.
Many of us underestimate the costs of long-term care services and could end up depleting our retirement savings and income.
With long-term care insurance, you may be able to pay for long-term care services without exhausting your assets or savings. It helps give you freedom of choice without sacrificing your lifestyle, or that of your loved ones. You have worked too hard to lose everything to pay for long-term care services.
Won’t my health insurance or Medicaid and Medicare pay for long-term care services?
The fact is, many people mistakenly believe that they are covered for long-term care services when they are not.
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46% of those who have health insurance believe that this insurance would cover most of their long-term care cost.
The reality is major medical plans pay for acute care and long-term care, for the most part, is custodial care. But perhaps the biggest misconception concerning long-term care is that the government will pay for it.
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62% of adults ages 45 and older, are unaware of the policies of Medicare, Medicaid or disability income insurance with respect to long-term care.
Medicare will cover some health care costs for retirees, but only what is considered “medically necessary.” It was not designed to pay for extended long-term care and should not be counted on as a resource to meet this need.
How about my children - can’t they take care of me?
When you consider this option, have you thought about the real consequences?
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Family caregivers who provide care 36 or more hours weekly are more likely than non-caregivers to experience symptoms of depression or anxiety. For spouses, the rate is six times higher; for those caring for a parent, the rate is twice as high.
If the care is for an extended period of time, could your children handle the stress on themselves or other members of their family? Do you want your children to have to pay for your care knowing they may be sacrificing their retirement plans or your grandchildren’s college fund? After asking these questions, many people realize that, ultimately, their children should not be counted on for their long-term care needs. In fact, for many, the sole reason they purchase long-term insurance, is to avoid becoming a financial or emotional burden to their children.