Long Term Care Design

Long Term Care protection is a very important retirement planning tool. Two very common concerns we hear from our clients are the threat of outliving one’s money and the possibility of going broke in a health crisis.

Securing an income stream and having an effective Long Term Care policy are two requirements for peace of mind in retirement.

The old-fashioned traditional design of Long-Term Care insurance today is out of reach for the majority of Americans. Because claims experience has been so high with this class of insurance, premiums over time have risen substantially.

There are many new options that have only become available in the last few years that provide Long-Term Care benefits at very little to no cost. We educate our clients on how to best position their assets to achieve this financial objective as well as secure valuable protection should they need care.

What is Long Term Care?

The misunderstood health care.

Long-term care is the assistance needed over an extended period of time to manage rather than cure a chronic condition such as arthritis, a stroke, dementia, the frailties of aging, recovery from surgery or accident. Care could be needed for weeks, months, or years.

Long-term care can include assistance in your own home, in a residential care or assisted living facility, adult day care, or in a skilled nursing facility.

Assistance may be needed when you are not able to do some of the basic “activities of daily living” (ADLs) such as bathing, dressing, toileting, or moving from a bed to a chair.

isn’t for everyone, but everyone should have a plan.

You might need assistance with ADLs if you suffer from an accident or injury, recovering from surgery, a prolonged illness, or advanced age.

Some people may need long term care because of mental deterioration, called “cognitive impairment” that can be caused by a brain disorder such as dementia, Alzheimer’s, or mental illness. They may appear to be “healthy” but are unable to take care of themselves.

Long-term care is not necessarily “long term.”

Normally a medical professional will determine that you are incapable of performing Activities of Daily Living and need help to do so. It can be a temporary or a permanent need.

There are six standard physical Activities of Daily Living (ADLs) that are recognized by doctors, government agencies, health and insurance companies.

1. Dressing
2. Bathing
3. Transferring
4. Continence
5. Eating
6. Toileting

Long-term care is sometimes called “custodial care” or “personal care” and family members frequently provide it. Personal care aides are hired as caregivers from home care agencies or by word-of-mouth referrals.

Long-term care is not typically covered under health insurance policies, HMO plans, Medicare, or Medicare Supplement Insurance. If these policies cover nursing home care or home care at all, it is only for a short-term or limited basis.

Long-term care is not necessarily “long term.” For instance in 1997 about 1/3 of all nursing home stays last six months or less. If someone is admitted, treated, and then discharged from a nursing home they may need help with daily activities which may not be covered by health insurance. This is where many people use their long term care insurance.

Some people only need help for a few weeks or months, others however may need care for the rest of their life, at any age.

The average length of time since admission among all residents currently living in a nursing home was 3 years. This average varied by gender and marital status.

We find that the length of time people stay in a nurshing home has increased, people are living longer because of improvements in medicine.

Long-term care insurance is not just nursing home insurance anymore. Comprehensive plans cover home health care, adult day care, assisted living, skilled nursing, and other types of care.

Paying for long term care yourself can mean sacrificing a lifetime of savings or losing your financial independence unless you plan ahead. Long-term care insurance

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