Tag Archives: long-term care insurance

February 17, 2016 Newsletter – Financial Facts

Financial Facts

February 17, 2016
The Need For Long-Term Care Insurance

THE NEED FOR LONG-TERM CARE INSURANCE
Separating FICTION from FACT

Few people are prepared to handle the financial burden of long-term health care. In fact, many people have a false sense of security when it comes to long-term care.

Fiction Fact:  “Medicare and my Medicare supplement policy will cover it.”

In fact, Medicare and “Medigap” insurance were never intended to pay for ongoing, long-term care:

• Only about 12% of nursing home costs are paid by Medicare, for short-term skilled nursing home care following hospitalization. (Source: Guide to Long-Term Care Insurance, AHIP, 2013)
• Medicare and most health insurance plans, including Medicare supplement policies, do not pay for long-term custodial care. (Source: 2016 Medicare & You, Centers for Medicare & Medicaid Services)

Fiction Fact: “It won’t happen to me.”

• At least 70% of people over 65 will need long term care services and supports at some point in their lives. (Source: 2016 Medicare & You, Centers for Medicare & Medicaid Services)
• About 68% of nursing home residents and 72% of assisted living residents are women. (Source: Long-Term Care Services in the United States: 2013 Overview, National Center for Health Statistics)

Fiction Fact:  “I can afford it.”

• As a national average, a year in a nursing home is currently estimated to cost about $91,000. In some areas, it can easily cost well over $100,000! (Source: Genworth 2015 Cost of Care Survey, March 2015)
• The average length of a nursing home stay is 835 days. (Source: Centers for Disease Control and Prevention, Nursing Home Care FastStats, last updated May 2014)
• The national average cost of a one bedroom in an assisted living facility in the U.S. was $43,200 per year in 2015. (Source : Genworth 2015 Cost of Care Survey, March 2015)
• Home health care is less expensive, but it still adds up. In 2015, the national average hourly rate for licensed home health aides was $20. Bringing an aide into your home for 20 hours a week can easily cost over $1,600 each month, or almost $20,000 a year. (Source: Genworth 2015 Cost of Care Survey, March 2015)

Fiction Fact: “If I can’t afford it, I’ll go on Medicaid.”

Medicaid, or welfare assistance, has many “strings” attached and is only available to people who meet federal poverty guidelines.
Whether purchased for yourself, your spouse or for an aging parent, long-term care insurance can help protect assets accumulated over a lifetime from the ravages of long-term care costs.

MESSAGES from the Masters…

TODAY IS YESTERDAY’S TOMORROW
by Jim Rohn

The problem with waiting until tomorrow is that when it finally arrives, it is called today. Today is yesterday’s tomorrow. The question is what did we do with its opportunity? All too often we will waste tomorrow as we wasted yesterday, and as we are wasting today. All that could have been accomplished can easily elude us, despite our intentions, until we inevitably discover that the things that might have been have slipped from our embrace a single, unused day at a time.
Each of us must pause frequently to remind ourselves that the clock is ticking. The same clock that began to tick from the moment we drew our first breath will also someday cease.
Time is the great equalizer of all mankind. It has taken away the best and the worst of us without regard for either. Time offers opportunity but demands a sense of urgency.
When the game of life is finally over, there is no second chance to correct our errors. The clock that is ticking away the moments of our lives does not care about winners and losers. It does not care about who succeeds or who fails. It does not care about excuses, fairness or equality. The only essential issue is how we played the game.
Regardless of a person’s current age, there is a sense of urgency that should drive them into action now – this very moment. We should be constantly aware of the value of each and every moment of our lives – moments that seem so insignificant that their loss often goes unnoticed.
We still have all the time we need. We still have lots of chances – lots of opportunities – lots of years to show what we can do. For most of us, there will be a tomorrow, a next week, a next month, and a next year. But unless we develop a sense of urgency, those brief windows of time will be sadly wasted, as were the weeks and months and years before them. There isn’t an endless supply!
So as you think of your dreams and goals of your future tomorrow, begin today to take those very important first steps to making them all come to life.
To Your Success,
Jim Rohn

Paying For Healthcare In Retirement

Plan ahead. It wasn’t raining when Noah built the ark.

It would be nice to believe that health care cost increases were a temporary phenomenon. Unfortunately, that’s not the case … the cost of medical care has outpaced inflation for the past 20 years and predictions are that medical and long-term care costs will continue to escalate into the future.

The decisions we make as to how and where we live in retirement are unique to each individual or couple. The options open to us, however, are frequently determined by our financial resources … our ability to pay. This review of the various ways to pay for health and long-term care costs during retirement is offered in the hope that it will be of assistance to you as you make decisions regarding your retirement plans.

Retiree Health Insurance Plans: If your company provides retiree health care benefits, make sure you know how much of the premium you will be required to pay, as well as deductible and co-payment requirements. Retiree health insurance plans are generally designed to coordinate with Medicare benefits. Caution: Even if your employer currently provides retiree health care benefits, there is no guarantee those benefits will be available when you retire.

Medicare and “Medigap” Insurance: Most people qualify for Medicare insurance when they reach age 65. Medicare helps to protect you from the costs of medical care during retirement. One fact, however, is evident … there is no “free lunch.” You will have costs related to medical care and the likelihood is that those costs will continue to increase each year.

Medicaid: Medicaid is a joint Federal and state program that helps with medical costs for some people with low incomes and limited assets. Medicaid is essentially a safety net for those who didn’t adequately plan for their financial needs in retirement, or who encountered unexpectedly large expenses that depleted their financial resources.

Long-Term Care Insurance: Long-term care insurance can put you in control, preserving your assets and dignity, while allowing you to select the type of facility and setting in which you want to receive long-term care services, if needed.

Personal Savings: Review your retirement plan to make sure that it adequately takes into account the potential costs of medical care and long-term care in retirement. If you find a shortfall, you may want to increase your personal savings now in order to have sufficient funds available after you retire.

Home Equity: Many retired people have built up substantial equity in their homes. There are a variety of ways to tap that equity if needed to pay for health care costs in retirement.

Going Back to Work: When it comes to planning for health care needs as we age, it’s time for a reality check. How many 70+-year-old people with health problems really want to be out looking for a job?

Don’t wait until it rains to start building your ark … Plan ahead while the choices are still yours to make!

Contact my office, we can help. (800) 419-5379

Contact@BenefitCI.com