Long Term Care

If you or a loved one becomes ill or can no longer take care of themselves due to aging, you should be aware of Long Term Care Insurance. Statistically our population is getting older, with 32 million people age 65 and over, and this number is projected to double in the next 50 years. Two out of 5 of those age 65 and older will enter a nursing home for an average stay of 2 1/2 years at an average cost of $100/day, This equals in excess of $35,000/year and this cost is rising!

Currently, Medicare does not provide long-term custodial care. Medicaid, which is a joint federal and state program for the impoverished to receive healthcare, does provide for convalescent care, however, you must have limited assets to be eligible for benefits. Remember that the state sets limits on your income and your assets.

An alternative is to buy a long-term care insurance policy that will help you pay for a nursing home stay of care at home. Remember, shop for value, not premium payments and ask about significant policy variables like the waiting period before benefits begin and which specific health conditions, especially Alzheimer's disease, are covered.

Long-term care insurance protects your retirement income and assets, allows you freedom of choice to receive care at home or not and gives you independence; avoiding depending on your family for care.

To begin designing your program, you must start with three important choices:

1. YOUR DAILY BENEFIT: How much money will your nursing home program pay per day?

2. YOUR BENEFIT PERIOD: How long will the proceeds be paid, 2 yrs, 3 yrs or unlimited?

3. YOUR WAITING PERIOD: The number of days you must qualify for benefits and receive services before your policy pays benefits.

After you decide on the above, then you look at the features or options of the program. The following are features that we recommend our clients to consider:

1. HOME HEALTH CARE-Allows you to receive care at home.

2. ADULT DAY CARE CENTER-Provides care during the day my but not overnight.

3. RESPITE CARE- Allows family and other caregivers to have some time off without worry by paying for temporary professional care at home or in a facility.

4. ASSISTED LIVING FACILITIES-As an alternative to nursing homes these residential facilities provide room, board and custodial care.

5. BED RESERVATION-To pay nursing home charges to reserve your bed while you are temporarily hospitalized.

6. CARE COORDINATION-Will pay for a care coordinator who can offer you professional advice and assistance.

7. COST OF LIVING INFLATION OPTION- Increases your benefit limit.

8. EXTENDED GRACE PERIOD DUE TO COGNITIVE IMPAIRMENT-If you miss a premium payment due to cognitive impairment you may reinstate your policy within six months from the premium due date.

9. WAIVER OF PREMIUM- You stop paying premium when benefits are being paid.

10. GUARANTEED RENEWABLE FOR LIFE- Once your policy is issued, your policy cannot be canceled as long as premiums are paid when due.

11. WHAT TRIGGERS THE POLICY TO PAY?

1. A cognitive impairment that requires you to have continual supervision for your own safety and that of others. Example- disease or senile Alzheimer's dementia.

2. Need assistance to perform two or more ‘Activities of Daily Living’. This means you need help with eating, toileting, dressing, continence (control of bowel or bladder) and/or moving in or out of a chair or bed.