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