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Long Term Care

Two of the biggest fears in retirement are outliving your money and the effects that a long term care event would have on your assets, independence, and peace of mind. With just a little preparation, planning for an unexpected illness by exploring your options and transferring part of this risk to an insurance company may help you keep your financial and retirement plans intact.

A need for long term care can result from accidents, illness, advanced aging, stroke, or other chronic illnesses. Living a healthy lifestyle means you’ll probably live a long life…and need long term care as you age. An unhealthy life means you’re likely to get sick… and need long term care because of illness. 
 
Pat has provided exceptional customer service to us on several very important issues. He was always expertly prepared when we met and the information she presented was creatively tailored to our personal and financial needs. Pat helped us select the best coverage for our money and we could not have been more pleased with the choices he helped us make. In addition, he engaging, friendly personality always made us feel very comfortable.
Bill and Nina H. 
 
 
Benefits you receive with a long-term care policy:
  • Asset protection
  • Protection of a healthy spouse or partner
  • Removal of caregiving burden from loved ones
  • Maintenance of control, independence and dignity
  • Peace of Mind!
 
 
 
 

WHAT IS LONG TERM CARE?

Long term care is the assistance or supervision you may need when you are not able to do some of the basic activities of daily living (ADL) such as:
  • bathing
  • dressing
  • eating
  • continence
  • toileting
  • transferring  
You may also be eligible for your plans benefits if you need continual supervision for a cognitive impairment.
 
Long term care insurance may be of particular importance to:

FAMILIES
Families who want to protect their personal relationships by not becoming a burden, protect their lifestyle, and protect their assets.

RETIREES
Retirees and pre-retirees wanting to protect their nest egg and financial independence.

WIDOWS • WIDOWERS • DIVORCEES • SINGLES
Widows and Widowers, Divorcees, and Singles who may not have a partner to care for them or significant assets.

WOMEN
Women who tend to have fewer financial resources due to being out of the workforce to have children and raise a family, and also live an average of 5 years longer than men.

WHO WILL PAY
FOR YOUR LONG TERM CARE?

 
 
 
“Contrary to what most Americans believe and expect, Medicare does not provide meaningful coverage for long term care.”
— Senator John D. Rockefeller

 
 
MEDICARE
Medicare generally may cover a maximum of 100 days of services after a 3-day hospital stay, if you need skilled care services or rehabilitative care. For home care, if you are receiving skilled home health or other skilled in home services, Medicare may pay but only for a short period of time.

MEDICAID
Medicaid is the government funded program that people with limited income and assets rely on, and only covers nursing home care. To get help you must meet federal and state guidelines for income and assets. Once you have “spent down” assets to the qualifying eligibility status you will lose being able to make your own key care decisions, including determining where you receive care.  

SELF-INSURING
Using personal savings and income to pay for care as needed. A need for long term care can disrupt the best laid financial plans. Even those with significant assets could erode savings and retirement accounts very quickly should you need long term care.
 
 

PRIVATE PAY / FUNDING OPTIONS

Traditional Long Term Care Insurance policies reimburse a policy holder (up to a pre-selected limit) for services to assist them with activities of daily living once they go on claim. You are able to receive care at home, in an assisted living facility, or in a nursing home.

Linked benefit options:
Alternatives to traditional policies that bundle long term care coverage with annuities or life insurance, known as hybrid policies. These options offer a guaranteed payoff whether you need care or not, which has led to their growing popularity.  

1. Life insurance can help fund long term care costs in several ways: 
  • Life insurance with an Accelerated Benefit Rider (ADB)
  • Life insurance with a Chronic Illness Rider
  • Life insurance with a Critical Illness Rider

 2. Asset-Based Long Term Care –  these convert an asset into income to pay for long term care needs:
  • Immediate Annuity
  • Deferred Annuity
     ** Neither of these are variable annuity options

The cost of long term care insurance may be a small portion of what care services may cost you out of pocket. Having a plan for the possibility of a long term care event, allow you and your family to participate in choosing the setting of care and the services.
 
 
 
 
 
 
 
Let’s create a plan for your future and peace of mind.