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