Long-term care events happen to a family, not just a person. People live longer & healthcare today & expenses rise, the need for long-term care planning becomes more of a “when” than an “if” situation.
When should you purchase a Long-Term Care Policy?
When you can qualify medically!
Long-Term Care is one of the major risks we’ll face in retirement. 70% of everyone that reaches the age of 65 will need it.
Who needs Long-Term Care:
70% of people turning 65 years old will need Long-Term Care according to AARP
60% of all people will need long-term care according to LongTermCare.gov
Long Term Care insurance allows you to maintain your independence and afford quality care, and it also helps reduce the financial and psychological stress that a long term care event can impose on your family.
Who are the Care Providers?
At Home Care:
- Family Members
- Friends
- Home Care Companions
- Home Health Aids
- Licensed Nurse
- Physical, Occupational, or Speech Therapists
Types of Facilities:
- Assisted Living
- Skilled Nursing
- Memory Care
Traditional Long-Term Care example for 2021 (subject to change.)
- This is for a standard rating of health. Better health would be lower premium, poor health would be higher premium or cause the decline of policy.
- Other options can be added and some of these options can be removed or replaced.
- If the premium increases you may have the option of taking a paid-up policy or lowering your benefit to reduce the premium.
Age in Good Health | Amount of Monthly Benefit | Benefits Period | Elimination Period | Inflation Protection continues to increase Monthly Benefit & Pool of Money | Pool of Money | Annual Premium Can Increase | ||
Male | At age 62 | $4,500 monthly benefit | 3-year period | 90 Days | 3 % | $108,000 After 10 years $142,000 | $2,142 | |
Female | At age 62 | $4,500 monthly benefit | 3-year period | 90 Days | 3 % | $108,000 After 10 years $142,000 | $3,258 | |
Couple joint policy | Both at age 62 | $4,500 monthly benefit each | 3-year period | 90 Days | 3 % | $108,000 each After 10 years $142,000 each | $3,780 This is a 30 % reduction in both premiums | |
Asset Based Long-Term Care Premium for 2021 (subject to change)
- You must qualify mentally and physically for this policy.
- There are other options that can be added and some of these options can be removed or replaced.
Age in Good Health | Amount of Monthly Benefit | Benefit Period | Elimination Period | Inflation Protection continues to increase Monthly Benefit & Pool of Money | Pool of Money | Death Benefit | Surender Value Remains the same through out the life of the policy | Single Premium Amount or Annual Total of up to 10 years | |
Male | Age 62 | $4,382 monthly benefit | 4-year period | None | 3% | $208,276 after 10 years $279,905 | $158,370 after 10 years $116,200 | $70,000 | $100,000 |
Female | Age 62 | $4,375 monthly benefit | 4-year period | None | 3% | $174,436 after 10 years $234,428 | $164,571 after 10 years $121,800 | $70,000 | $100,000 |
Guaranteed Income Annuity with Guaranteed Lifetime Withdrawal Benefit Rider (GLWBR Enhanced Benefit) 2021 (subject to change)
- No qualification no underwriting.
Age | Annual Lifetime income after 10 years | GLWBR Enhanced Benefit Annual income for up to 5 years after 10 years (Then reverts to lifetime income) | Death Benefit | Single Premium Amount or Annual Total of up to 10 years | |
Male or Female | Age 62 | $11,775 | $23,550 | Accumulated dollar amount minus benefits paid | $100,000 |
What does Medicare or Medicaid pay for Long Term Care?
Medicare
- Admitted to hospital, stay 3 nights, and then skilled nursing facility.
- Must require skilled care that is reasonable and necessary to prevent or slow further deterioration.
- Days that Medicare Pays
- 1-20 100% for approved hospital and skilled nursing costs
Medicaid
- Must “spend-down” assets to qualify
- Use your won assets first.
- Medicaid eligibility has limitation on income or assets of both.
- Safety net for the poor.
- General will only pay for a skilled nursing facility.
- Approval would be unlikely if you are receiving a large pension.
Cost of Care Examples for 2021
- Home Health Care $30 per hour minimum 4 hours a day.
- Assisted Living monthly $5,000
- Skilled Nursing monthly $8,000
- Memory Care $9,000 + per month
To activate LTC policy to receive benefits you must not be able to perform two of the six daily activities.
Bathing: The ability to clean oneself and perform grooming activities like shaving and brushing teeth. | Dressing: The ability to get dressed by oneself without struggling with buttons and zipper. | Eating: The ability to feed oneself. |
Transferring: Being able to either walk or move oneself from a bed to a wheelchair and back again. | Toileting: The ability to get on and off the toilet. | Continence: The ability to control one’s bladder and bowel functions. |
Our Long Term Care Specialist
Leni Cohen is a Specialist in long term care planning and funding strategies She helps her clients to structure their retirement income so that any impact to the retirement plan will not be eroded due to any unexpected illness.
With 20 years of long-term care planning experience, she has the ability to pinpoint the critical decisions for the funding process. One of her strengths is her ability to offer ideas to those with medical issues that some may feel will keep them from long term care coverage.
The reason for her passion is her early years as a caregiver for a family member. She truly understands the physical, emotional and financial stress of caring for a loved one and still trying to juggle family and career. With this personal experience she understands that affordably in planning is very important!
Take the next step and look into your options for Long-Term Care Insurance. Call 800-641-3315 and ask for Leni
Get a Long Term Care Quote
- There is no cost to using a broker.
- A broker can compare many companies and plans and explain the differences to you. A company agent only knows their plans and can only offer their plans.
- A broker continues as an advisor to you.
- If you have questions or issues, your broker is an additional asset that you can rely on and understands the plan you are on.
Medicare does not cover Long Term Care. Medicare may pay for the first 20 days in a skilled nursing facility. After that, you’ll need to pay a coinsurance per day, for up to 100 days. Once you surpass 100 days, you’re responsible for the cost of your care.
To activate a Long Term Care policy you need help with two out of six daily activities of living (which generally include bathing, dressing, toileting, eating, transferring and continence) or you have severe cognitive impairment.
There are different levels of Long Term Care.
- Home care costs range from $30 per hour and up, usually with a 4 hour minimum.
- Assisted living in a facility which can cost $5,000 or more per month.
- Skilled nursing in a facility can cost $7,000 or more.
- Memory care in a facility which can cost $8,000 or more.
- Many facilities will base the price on the level of care needed, such as an extra charge for bathing or administering medications.
Yes, there are several ways to purchase a Long Term Care policy.
- Traditional LTC: You pay the lowest premium. However the premium can increase and if you do not use it there are no other benefits.
- LTC with living benefits: This has a higher premium which offers life insurance, and the premiums are guaranteed not to increase.
- Annuities with a Long Term Care Rider.
Maybe. Unlike life insurance, which is based on mortality, Long Term Care policies are based on morbidity. The younger and the healthier you are the easier to qualify and get a lower premium.
READY TO TAKE THE NEXT STEP
For more information to help make a good decision about long Term Care insurance you can
call 800-641-3315 or
Click on the button below to set a convenient time for you.
