What is Long Term Care?
Long Term Care can be defined simply as care provided by another party for the benefit of someone who is unable to care for themselves because of illness, disability, or aging. Care can range from help with daily activities at home such as bathing, eating and dressing, to skilled nursing care in a nursing home on a temporary or permanent basis.
Who Needs Long Term Care?
Most people don't start thinking about planning for long term care until they are in their 50s, but the fact is that you could need it at any age. Approximately 37% of all people receiving long term care are 18-64 years of age, and 63% are persons aged 65 and older. Thirty five % of people age 65 and older will move into a nursing home at some point in their lives and their average stay will between 3 and 5 years. Seventy % of people 65 years of age and older will need some type of long term care in their lifetime whether it be at home or in a nursing home, and the cost of care at home is expensive.
Who Pays for Long Term Care?
Most traditional long term care expenses are paid for with personal or family assets. Please do not make the mistake of thinking that traditional medical insurance or Medicare will pay for long term care services like so many people do. Medical insurance will not cover any long term care expenses, Medicare will only cover long term care expenses for short periods of time for re-hab, and Medicaid does not pay unless an individual qualifies.
Who Purchases Long Term Care Products & Services?
The largest group of people who engage in planning and who buy some kind of long term care product or service are the ones who have had personal experience with it. They've seen friends, people at work or church, or other family members spending everything they had on caring for themselves or a loved one. We know that they would tell you if they could that the impact that all of this loss has on individuals and families cannot be overstated, and that planning for long term care can save a spouse and children from a world of financial pain.
Currently there are only 5 options for financing long term care
1. Self-insure: pay out-of-pocket
2. Medicaid: requires spend-down planning
3. Long term care insurance: pays for care at home or in the nursing home
4. Life insurance with a long term care rider: pays for care at home or in the nursing home
5. Annuity with a long term care rider: pays for care at home or in the nursing home
We can assist you with options 2 through 5 above. It is our goal to assist you with determining which product and/or service is the best for you and your family. Don't wait until it is too late and you are being forced to make important decisions in crisis mode! Contact us to set up an appointment for a free consultation and experience the peace of mind that comes from planning for your family's financial future today.