Long Term Care

If you are like most people, you have insured your health, auto, home, and life.  You have worked hard and are looking forward to your retirement years.  But what if you needed long term care?  Long term care (LTC) is a risk that can severely impact all of your carefully laid plans.

 

Throughout the United States, there is a growing concern about the high costs of long term health care and the effect these costs may have on retirement security, quality of life, and family budgets.  Long Term Care Solutions, Inc. will help you understand the terminology and policy benefits in order to determine the plan that is right for you.

 

Please select for more information:

 

What are the types of Long Term Care and where are LTC services provided?

 

What are the costs of LTC and who pays for it?

 

Which features should be considered when purchasing LTC Insurance?

 

 

Long Term Care Affects People of All

Ages and Circumstances

 

The federal government estimates that at least 70% of people over the age of 65 willl require long term services at some point. February 2009 Financial Advisor-LTC-A Key part of Finanaical Planning.

 

78 % of adults receiving long term care at home rely exclusively on family and friends to provide assistance. 70% of people with Alzheimer's disease live at home, where families provide at least 75% of their care. Family Caregiving Alliance-2009 National Policy Statement.  

 

 

Impact on Family

 

In addition to financial considerations, it is important to realize that when one person requires long term care the entire family is affected. Difficult issues such as the type, quality of care, location, and the role of family members must be addressed. 

Who will assume or oversee the care?  Traditionally, long term care has been provided by a family member.  Over the years, American families have evolved into two income households.  Families are more mobile and often live long distances from each other. As a result, the cost and complexity of long term health care pose greater financial and emotional difficulties for everyone involved.

 

 

 

THERE ARE MANY REASONS WHY PEOPLE BUY LONG TERM CARE INSURANCE. DO YOU VALUE ANY OF THESE?

 

 

Long Term Care Solutions, Inc

 

"Putting the Pieces Together"

LTC- The Solution to the Problem

 

For many American families, long term care insurance is a wise choice.  In some situations, long term care insurance can help people avoid going to a nursing home by providing the cash necessary for other types of care, including in-home health care.

 

Key Elements for LTC Policies

 

Most policies are designed to pay a daily or monthly benefit to an insured when covered services are rendered.  The following four items are key elements to the majority of policies on the market today (traditional, tax qualified, long term care policies).

1. Term.  This refers to how long the insurance company will pay once you begin receiving covered care.  
2. Daily Benefit.  Refers to how much the insurance company will pay on a daily basis
3. Inflation Protection.  Since the cost of LTC is continually increasing, policy benefits need to grow over time.  Most policies offer two different inflation protection options- a 5% simple increase per year, and a 5% compound increase per year.
4. Elimination period.  Refers to how soon the insurance company will start paying for your care.  The most common elimination (waiting) periods are 0, 20, 60, and 100 days.  The longer you are willing to pay for your own care, the lower your premium will be.

 

Different Types of LTC Policies

 

There are several different types of polcies available:

 

• 1. Traditional Policies.  The majority of new policies include a reimbursement for care-related medical expenses.  These policies are not investment oriented, and there is no cash value build up.
• 2. Limited Pay Policies. iThese policies require much larger premium payments for a number of years (usually one to ten), but then the coverage is paid up for life.
• 3. Combination Policies.  Some policies combine life insurance and long term care coverage.  They are often single premium policies, and require a very large cash deposit at the beginning.  The LTC coverage on these policies is more restrictive than with traditional policies.
• 4. Cash Policies.  This is a "new generation" LTC policy which minimizes paperwork (no claim forms!); optimizes personal choices about from whom and where you receive services; and provides a monthly cash benefit.
• 5. Annuity Riders.  Some annuities offer a long term pay-out rider.  Many times, these do not offer true long term care insurance protection, but rather provide penalty-free withdrawals for your own money.

 

 

When is LTC insurance Not Right for Me?

 

There are instances where long term care insurance is not the right option for you:

 

• If you have little or no assets.  At a minimum, your assets should be equal to the cost of one year in a nursing home (about $44,000).
• If you are already disabled or have a serious health problem which puts you at high risk for needing long term care.  In these instances, you may not be able to pass the underwriting required by the insurer to obtain coverage.
• If you have limited ability to pay premiums.  Paying premiums should not cause you to deny yourself essentials like food, shelter, utilities or medicine. 

 

The fact that 1 out of 2 people turning age 65 will need some form of care either at home or in an LTC facility, makes Long Term Care Insurance an integral part of  financial planning. 

 

FOR ASSISTANCE WITH THESE AND OTHER QUESTIONS,

 CONTACT US FOR HELP,  OR WE CAN SCHEDULE AN APPOINTMENT TO DISCUSS YOUR OPTIONS.