HOW IMPORTANT IS PLANNING FOR LONG-TERM CARE?
Consider the facts:

  • Americans are living longer.  The need for Long-Term Care has risen dramatically as America continues to age.
  • The odds of a person over age 65 needing care in a Long-Term Care facility, such as a Nursing Home, are about 1 in 3.  For a couple, the odds nearly double that one will need care.
  • The odds of a person over age 65 needing Home Health Care are almost 70%.  Again, for a couple, the odds are that much greater that one may need care.
  • It’s expensive.  Depending on where you live and the level of care you may need, costs can be more than most people are prepared for.  In a Nursing Home, costs can run $120—$300 per day, and Home Health Care services aren’t far behind, depending on the level of care you need.
  • The average length of stay in a facility based care situation is about 2 1/2 years.   Some stays are even longer.
The odds are about 50/50 that you’ll need care of some kind, somewhere along the line.  At $150 per day, an average Nursing Home stay could cost $136,000 or more… 

Home Health Care services may appear to cost less, but are more likely to occur and would probably last longer.  In many cases children either cut back on hours at work, or leave work altogether in order to help.  The costs of lost wages are rarely calculated.

The simple fact is that all of the statistics in the world won’t matter if you need care. What will matter is whether you and your family are prepared… both financially and emotionally.

Out of $41.2 billion spent in 2000 on Long-Term Care, only 13% was paid for by Medicare.  The reason is simple. Medicare only pays for Skilled Nursing Home care following a three day hospital stay.  It does not cover Intermediate or Custodial care (The kind of care most people need). 
Medicaid is a government program which is designed to help those who cannot afford care on their own. If you are already impoverished and have nothing to lose, then Medicaid may provide assistance.  However, rules for Medicaid qualification are changing as the number of Americans needing care increases, and vary from state to state.  Here are some things you need to know in NC:

  • Your assets may not exceed $2,000. 
  • In NC, a healthy spouse may keep a house on up to one acre of land, one automobile, and one-half of marital assets up to a maximum of $101,640.
  • Assets transferred to other people are subject to a 36 month “look-back” period.  Assets transferred to trusts are subject to a 60 month “look-back” period. 
  • When a Medicaid recipient in a nursing home dies, Medicaid files a claim against the estate to recover expenses paid by Medicaid.

In other words, the idea that somehow the Medicaid program will help you to protect assets is absurd.  It simply was never intended to serve that purpose.  Unfortunately, because so many Americans are not planning for Long-Term Care, many will end up ‘spending down’ their assets and qualifying for Medicaid assistance.

If you have assets that you DO want to preserve for your spouse or heirs…  DON”T rely on Government Programs.  Proper planning is your responsibility.

HOW WILL YOU PAY FOR LONG-TERM CARE?
Medicare
Medicaid
Most of America’s retirees have not planned for Long-Term Care.  Why?  The biggest reason is simply for fear of the cost.  If it was just a matter of checking a box on a piece of paper, saying that you wanted to be covered for Long-Term Care, and it didn’t cost anything…. How many people would check the box ‘Yes”? 

Given that the odds are about 50/50 that someone age 65 or older will need care, it just doesn’t make sense to leave Long-Term Care out of your retirement plan.  Regardless of your financial circumstances now, you and your family should know what options are available, and what to expect if and when the need for care arises.  For many, Long-Term Care insurance can be the best way to pay for Long-Term Care expenses. The key becomes how to provide coverage in a way that makes good financial sense.
Long-Term Care Insurance
Why aren't people planning for LTC?

If it was just a matter of checking a box on a piece of paper, saying that you wanted to be covered for LTC, and it didn't cost anything...

How many people would check the box "Yes"?
  • Premiums are based on age, so the sooner you start planning, the more cost effective your plan is likely to be.
  • There are many options available that provide outstanding benefits and can be tailored to fit almost any budget.
  • Plans vary from company to company. Some plans and companies are better than others.  An advisor you can trust is the key to getting the right plan.
  • The younger you are, the more important it is to protect against inflation.
  • There are new policies available that are designed to provide more affordable coverage through shared family benefits.
  • Planning for Long-Term Care means more than just buying a policy.  It means looking at the ‘big picture’.  Everyone’s circumstances are different.  Finding the right plan means feeling secure and having peace of mind… Without breaking the bank.
  • Many of our clients are able to protect against Long-Term Care as well as their other healthcare expenses and save money!
You and Your Family
LTC is everyone's problem...

In 2000, 58% of the $41.2 billion Long-Term Care bill was paid by individuals and their families...
Some Statistics:

People over the age of 65 have about a 50% chance of needing care.

Average costs for facility-based care are about $150 per day... The average length of stay is approx. 2.5 years.

Home Health Care is the fastest growing Long-Term Care service.
Unfortunately, the cost isn’t only financial.  Probably the biggest expense for most families is the emotional expense.  The emotional cost for both those who need care and those providing care can be devastating.  For those who need care, the fear of abandonment,  becoming a burden or losing their independence, or simply losing financial security for themselves and those that they love, can  be very difficult.

For those who love and care for someone with a Long-Term Care need, just watching someone they love trying to cope with becoming more and more dependent can be difficult enough.  Add the idea that there may be children or grandchildren that need time and attention, a job, and financial stresses and you have more than enough ingredients to cause an emotional and financial meltdown.  Given all of the facts, wouldn't it make sense to do some planning?
This morning about 1.8 million people woke up in a nursing home... But Long Term Care isn't just about nursing homes anymore. 

Long Term Care is:
In the year 2000, 58% of the $41.2 billion Long-Term Care bill was paid for by individuals and their families.  That means that $23.9 billion was paid for by individuals and their families and that does not include the cost of lost wages and time spent away from the workplace caring for those in need. 

Most people are not in a position to pay the expense for an extended Long-Term Care situation and end up ‘spending down’ the resources that took a lifetime to accumulate. 
Having a discussion might be a good idea...

Talking about LTC might seem a little uncomfortable at first, but the only cost for getting the facts is a small investment of time talking to an expert so that you understand your options.
Plan for the people you care about... and who care about you.

Planning for LTC can save assets...  but most people do it because of the people they love.
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  • Home Care 
  • Adult Day Care
  • Assisted Living
  • Nursing Home
American Retirement Counselors
Because A Great Retirement Starts With Great Planning