| What is Long-Term Care? When people
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| | long-term care insurance through the new
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| consider the subject of long-term care,
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| | Federal Long-Term Care Insurance program.
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| they often think about nursing homes. In
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| | The result is that consumers are forced to
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| fact, long-term care has little to do with
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| | pay privately for their care.
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| nursing homes. Understanding the
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| | Unfortunately, the best thought-out
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| difference can help you protect your
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| | retirement plan rarely takes into
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| family and finances.
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| | consideration living a long life. Put
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| The Consequences of Living Longer
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| | another way, those assets and income have
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| Long-term care is a continuum of care
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| | been allocated to pay for retirement, not
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| services and housing that you will need
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| | for the consequences of living a long
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| later in life. Think you won't live a long
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| | life. This results in the need to invade
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| life? Think back 25 years ago. If you had
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| | principal and divert income. As a result,
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| cancer or a stroke, you simply died. Few
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| | one of a seniors' greatest fear, outliving
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| ever heard of Alzheimer's.
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| | their assets, literally may come true.
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| Today, it is the leading cause for
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| | The Role of Long-Term Care Insurance
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| long-term care services. The longer you
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| | The use of long-term care insurance thus
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| live, the more likely you are to need
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| | becomes an important part of planning for
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| care. The question is not who will take
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| | disability caused by living a long life.
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| care of you, because your family will most
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| | The product has two roles: helping keep
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| often, but rather what will that care do
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| | families together and allowing your
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| to your family and finances.
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| | retirement portfolio to execute for the
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| Long-Term Care is Usually Custodial Care
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| | purpose for which it was intended, namely
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| Long-term care is defined as needing
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| | retirement.
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| assistance with your activities of daily
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| | From a family perspective, who will
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| living (toileting, bathing, dressing,
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| | provide your care? Like it or not,
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| eating, transferring from one point to
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| | children will play a key role. Long-term
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| another, and continence). It also includes
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| | care insurance (LTCI) doesn't replace the
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| cognitive impairment so severe that the
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| | need for family involvement in providing
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| individual needs constant supervision.
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| | care but rather builds on it. It pays
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| If you need custodial care, chances are it
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| | professionals to assist the person with
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| will be delivered in the community, not in
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| | the toughest tasks such as toileting,
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| a nursing home. Many of you have heard
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| | bathing, feeding and continence. This, in
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| compelling statistics from The New England
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| | turn, allows the family to provide care
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| Journal of Medicine stating that 43% of
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| | better and longer at home. That leads to a
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| those over age 65 will need nursing home
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| | critical question: have YOU planned for
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| care. What the article actually said is
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| | the consequences of living a long life?
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| that that number may spend some time in a
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| | From a financial point of view, LTCI
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| facility. The fact is, few end their days
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| | allows your retirement plan to stay
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| in one. Every study conducted finds that
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| | intact. That is particularly important
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| care is overwhelmingly provided at home.
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| | given the recent steep decline in
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| The key question, of course, is who is
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| | portfolio value. The product, in effect,
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| going to pay for it? Who Covers the Cost?
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| | protects the balance of your account
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| Medicare & VA
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| | value.
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| Medicare, the primary health care program
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| | LTCI also protects income. Although you
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| for retirees pays only for skilled or
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| | may qualify for Medicaid to pay for
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| rehabilitative care, not custodial care in
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| | nursing home costs by transferring assets,
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| any venue. Medicaid, a federal and state
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| | your income (pension, social security, IRA
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| program for financially needy individuals
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| | and or 401k payout) cannot be protected.
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| will pay for custodial care, but primarily
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| | When buying this insurance, look for a
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| in nursing homes. Funding for home care
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| | long-term care specialist. Consider their
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| and assisted living is very limited and
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| | training, educational credentials, and
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| based on availability of funds. Veterans
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| | commitment to help solve your long-term
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| believe that the VA will pay for home
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| | care needs. The key is whether they talk
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| care, adult day care, or assisted living.
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| | first about a plan or a product. If they
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| As with Medicaid, funding is limited and
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| | are interested in the plan, you are
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| generally based on service-related
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| | dealing with a professional. If they focus
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| disability. In fact, the federal
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| | first on product and price, consider
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| government has as much said this to
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| | getting another opinion.
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| veterans by encouraging them to purchase
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