LTC Advisors

Here are three things that you might not know about long-term care insurance. We think that focusing on in-home care is key.

3 Surprising Facts You May Not Know About Long-Term Care Insurance Long-term care insurance can come to the rescue if you need care. Here are three things that most people don’t realize about LTCI.

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Spring Has Sprung!
June is a popular month for weddings. The tradition of a June wedding dates back to Roman times. The origin of June derives its name from Juno, who was the Roman goddess of love and marriage. It was thought that couples who married in June would be blessed with prosperity and happiness.

Marriage and the Blended Family
The idea of a traditional family has evolved over the years, and it has become more diverse, inclusive, and flexible. Blended families are more common than ever. In fact, it’s estimated that 1 in 3 Americans are part of a blended family and that 2,100 new stepfamilies are formed every day in the US. 42% of Americans have at least one immediate step relative.

The Importance of Planning with a Blended Family
Statistics show that second or subsequent marriages have higher success rates than first marriages. However, blended families also have more challenges to overcome. Initially, as children are young, childcare, discipline, and education are ongoing issues that are addressed with stepparents. As children age and become adults, it’s important for children to plan (with their parents and stepparents) for their parents’ need for long-term care. This can be a point of contention if it’s not discussed and documented before a long-term care crisis occurs. Children may want to be involved in decisions related to their parents’ declining health. Additionally, children may want to help in a caregiving role or may be concerned about spending assets to pay for care.

The Solution: Long-Term Care Insurance
Long-term care insurance provides benefit dollars to pay for care. Care can be provided at home, in an assisted living facility, or at a skilled nursing facility. A LTCI policy can protect assets for children while also offering needed respite to a caregiving spouse. A policy can stop any argument over where care should be provided and how to pay for it.
When we advise our clients, especially those who belong to blended families, we should be recommending that they design a plan for their long-term care. If there are assets to protect, we recommend that they consider a long-term care insurance policy. However, regardless of income and assets, everyone should have a plan for their dependency that includes answers to the following:
· Where do they want to receive care?
· Who will provide their care?
· How will they pay for their care?
For more information on the policies available in our state, please contact a member of our team at 407-949-6722.

Myth – I can save the money I’ll need for joint long-term care protection

Is Self-Insuring a Good Option to Fund a Long-Term Care Crisis? Does self-insuring make financial sense for when you become dependent?

The downsides of self-insuring
You may need care longer than expected or care may cost more than expected. For the average woman who may need 3.7 years of care, costs for professional services can range from about $203,000 for home healthcare services to over $391,000 for Skilled Nursing facility care. Men, whose average need is 2.2 years, may incur a total cost of $120,000 for home healthcare services to over $232,000 for Skilled Nursing facility care. These averages are based on today’s dollars – healthcare costs especially for long-term care services have been increasing rapidly due to staffing shortages and supply and demand.

Depending on how long care is required, there might be less of an inheritance than expected. Are the assets ear-marked for an inheritance or a charity? If these assets are used for care, how would that affect the beneficiaries?

Your spouse’s lifestyle may be affected if assets are depleted for your care. Will there be enough money left for your spouse to travel, pay day to day expenses or even their own long-term care needs when they become dependent?

Family members may delay needed care because they are afraid of running out of cash. It’s always easier to spend someone else’s money (the insurance carrier). Oftentimes, family members delay hiring professional care because they are hesitant to spend money. Also, if they don’t hire professional care, the care burden falls on the family members.

Are your assets subject to changes in the economy? Many investments can fluctuate over time and world circumstances. Investments may not be as lucrative today as they were yesterday. Is there a tax consequence that needs to be considered?

Long-term care insurance is usually recommended for those under 65 years old with a net-worth of $200,000 to $2,000,000. Under $200,000 is typically not financially viable since Medicaid will kick in once assets are depleted. Over $2,000,000, they may have enough assets to pay for care from their assets. For those that fall in between, the protection that comes with long-term care insurance often makes sense. Long-term care insurance can act as a coupon - leveraging your client’s money to be used later. For information on the long-term care policies available in your state, please contact us at 407-949-6722.