The good news is we are all living longer than our ancestors. Unfortunately, this increases the likelihood of us becoming frail sometime in our life time. Long Term Care is what people need when they can’t perform the tasks of day-to-day living. This includes things like bathing, dressing, toileting, continence, eating, and moving from chair to bed, etc. Or, the person may need care and supervision due to a cognitive impairment such as Alzheimer's or Parkinson’s disease.

These are the most frequently asked questions asked about LTC Planning:

What does long term care cost, and who pays?

The cost varies depending on state of residence and type of care (nursing home, in-home, etc.). Nursing home services currently average nationally $75,190 per year or $206 a day.₁ Costs are projected to rise at 5% or more a year for the next 20-30 years.

There are four options for paying for care. The individual needing care may --

1. Rely on family (spouse, children, etc). Appropriate only when there is a support system in place with available time, money, and accommodations.

2. Self-insure and pay for long term care with one's own assets and income. Recommended only for the very wealthy.

3. Implement a potentially costly spend down strategy to qualify for Medicaid. Most of the people we work with do not consider this a valid strategy.

4. Transfer a predetermined amount of the long term care risk to an insurance company. This protects your family’s income stream and lifestyle should you ever have a long term care need. In other words, buying a long term care insurance polity.

How much does long term care insurance cost?

Unfortunately, there is not a simple answer to this question. The cost is determined by your health and which carrier will accept your health profile. There are many benefit options available that may or may not be beneficial to you.

What is the best time to buy long term care insurance?

The best time to purchase long term care insurance is before you need it and when you are in good enough health to get it.

The rates are based on your age and your health at the time of application. Matching you with the best carrier for your health profile can make a huge difference in your premium.

We recommend considering a policy when you turn 50 to lower the cost of transferring the risk over time.

Should everyone consider long term care insurance?

Most should at least seriously consider it. The exceptions to this: 1) Those with a total net worth less than $100,000.  2) Those whose lifestyles would suffer undue hardship by paying monthly premiums.

Where can one receive long term care?

It’s a common myth that long term care is only received in nursing homes. However these are the most common settings one can receive care:

Your Home – Most people who are in need of care prefer to receive in their home. Care can be provided by paid skilled or unskilled workers.

Adult Day Care - These centers offer custodial care to allow people to stay at home and avoid moving prematurely into nursing homes. This type of service also often allows a spouse or care partner to continue working outside of the home.

Assisted Living Facility - Provide non-skilled care for people who need help with daily living but can still perform some of their daily activities. These facilities offer apartment style living. These institutions are a more personalized alternative to nursing homes.

Skilled-Nursing Facility - Also known as nursing homes, these institutions are for people who need assistance with most or all of the functions of daily living. In some cases they are for short-term rehabilitative care that is covered by Medicare under very strict guidelines where the care recipient is expected to make a significant recovery.

What the difference between medical care and long term care?

Medical care is provided by a skilled professional and includes treatments that are expected to improve or cure an injury or illness.

Long term care is primarily consists of custodial care and is most often provided by a home health aide. This can include but is not limited to some of the following services:

• Personal Care (Bathing, Dressing, etc.)
• Homemaker Services (House keeping, shopping, meal preparation)
• Skilled Nursing Care
• Physical Therapy

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