Living Life On Your Own Terms – The Importance of Long Term Care
What Is Long Term Care?
Long-term care (LTC) is a range of services and supports you may need to meet your personal care needs, when you cannot care for yourself for long periods.
When most people think of long term care, they think of nursing homes and assisted living facilities, but there are many different types of long term care. In general, this is the type of care that you may require if you are unable to perform activities of daily living (ADL’s). These activities include bathing, dressing, grooming, using the bathroom, eating, and moving around.
There are many circumstances that may cause you to need long term care. Whether young and have experienced an accident, are diagnosed with a debilitating medical condition, or in your retirement years and in need of additional support to continue living life to the fullest, planning for this is important to consider
Good planning can help make it easier for you and your family to manage care if needed, and support you with the costs that may come from any covered additional care.
Find out more about Long Term Care and how important it could be for you.
I’d Like to Learn More About Long Term Care
Things to Consider
When you look into the options available for LTC and whether it is something you need to set yourself up with now or in the future, there is a lot to consider.
- At what age should I purchase LTC insurance?
- Is long term care costly?
- How can caring for me impact my family?
- Is long term care insurance a good deal?
A lot of questions come up when thinking about long term care. The good thing is, you don’t have to figure them out on your own. We can help you ask the right questions, understand what may be a good fit for you and see how that can work into your financial plan.
It starts with a conversation.
Caring for the Caregiver – Defining the Caregiver Experience
Did you know there are over 53 million unpaid caregivers in the United States? Are you one of them? There are tools and resources out there for families that could redefine their caregiving journey.
Caring for family is important. Though important, it can cause challenges that you may not realize have impacted your day to day life as the caregiver. Some of these things are more obvious like having less free time but other items aren’t always so visible.
Areas that may be impacted can include:
- Identity discrepancy – The Caregiver/Family Member percentage
- Emotional Burden – For you or your family
- Stress – Caregiving involves stress in many areas
- Self-Care – Caring for others makes self-care more important
- Financial – From POA to Out of Pocket you’ll need a plan
- Physical Strain – Caring for someone else is hard work
- Social Isolation – For you or the person needing care
Being a caregiver changes the relationship you have with the person you are caring for. You step into a roll of caregiver and can’t always separate that from your personal connection. It can also cause stress or strain on your family, your resources, or your health.
Caregiving solutions tend to focus on funding but support for the caregiver shouldn’t be overlooked. If you are in a caregiving role now or may find yourself there someday, remember help is out there. Whatever your plan, be sure it includes self-care.
Have questions about what options may help you or how Long Term Care insurance can help?
Long Term Care Resources
Understanding your Long Term Care Options
Knowing the long term care options that are available to you is an important starting point when planning for the future. It’s important to think about where you want to live and what type of care you believe you might need.
Most people want to stay in their homes, but it’s not the right choice for everyone. Others prefer the services and amenities that come with certain types of living arrangements. Many also prefer or need the activities and social interaction that come with communities that provide services.
What Are My Options?
Many options for long term care settings include:
- Living with family
- In-Home Care
- Home Sharing
- 55+ Active Adult Communities
- Retirement Communities and Senior Apartments
- Adult Foster Care
- Assisted Living
- Nursing Home
- Memory Care
How much does long term care cost?
The short answer is: It depends. Many variables affect the cost of care.
Did you know family and friends provide about 80 percent of the long term care people receive at home? But when it becomes necessary to hire paid caregivers or move to a different living arrangement, care can get expensive quickly. The following information gives you an idea of the national average costs of long-term care today.
The cost of long term care usually depends on four main factors: where you live, the type of care you need, how much care you need, and how long you need it.
In the chart below are some national average costs for 2021, according to a market study conducted by Genworth Financial.
Doesn’t Medicare pay for long term care?
Many people believe that Medicare covers long-term care since both involve elder care. This is one of the most common misconceptions when it comes to long term care! In fact, 56% of boomers believe Medicare covers long-term care. Since long term care isn’t considered medical care, it isn’t covered by Medicare. This is why it’s also not covered by your regular health insurance.
Medicare covers doctor visits, hospitalizations, and medication. It can cover some long term care, such as a short stay in a skilled nursing facility, medically necessary in-home care, or hospice treatment if you meet very strict conditions. Your options will be very limited, and it won’t help with copayments or deductibles.
What about Medicaid?
Medicaid is a government program for those with low income and assets who cannot pay their medical and long term care bills. You must meet strict financial, health, and functional ability to receive long term care services through Medicaid. For Medicaid to even cover long-term care, you have to first spend down whatever assets you have. Medicaid is for those who truly don’t have any money to cover long term care expenses. It should never be your first choice since it will limit the control you have over where you want to receive care and the quality of care may be limited. Bottom line? Don’t rely on Medicare or Medicaid to determine your long term care options or strategy!
Questions to Consider
Where do you plan to retire?
Are you planning to move out of state? Will you have any family nearby who might be able to assist with your care? Cost of care can vary dramatically by state so make sure you do your research.
What type of care do you prefer?
Do you want the option for home health care? Would you want to be able to use less costly informal caregivers? Do you want the option for a really nice assisted living facility, sometimes referred to as a “country club” assisted living facility?
What can you comfortably afford over the long term?
If you’re considering long-term care insurance, meaningful coverage can have many benefits. Make sure that whatever plan you choose, you can afford it for the long term. A nice feature of many plans is that the premium is waived when you start receiving benefits. Some plans have guaranteed premiums, so you never have to worry about a rate increase.
What impact will long term care have on your income?
What will happen to your income should you or your spouse require long term care while one or both of you are still working? Relying on Medicaid to pay for your long-term care options means that you and your spouse will be subject to asset thresholds that can wipe out most of your retirement savings.
Note: Ask your insurance professional about a particular long-term care insurance policy that allows you to keep your assets equal to the benefits paid out, with no limit if the insurance isn’t enough and you have to turn to Medicaid to pay your bill.
What impact will long term care have on your assets?
Retirees typically use assets for income. You should speak with your financial advisor regarding the impact to your income if you spend a significant amount of your assets on long-term care.
Create Your Plan
Make sure you don’t make a costly mistake. Don’t expect Medicare or Medicaid to cover your long term care. Do not let the rising cost of long term care wipe out the financial assets you worked so hard to save. Instead, take control of your future and start planning for long term care today!
What factors influence who needs long term care?
Understanding Long Term Care
Long term care (LTC) is a topic that can be difficult and confusing to understand. You may believe you’ll never need such assistance or that your existing medical coverage will take care of it. In this series, our goal is to give you the tools and information you need so that you can create a plan should you ever need care. Whether you have cared for a loved one and have a little knowledge about long term care or are just starting to educate yourself about LTC, it’s important to start at the beginning with a better understanding of what it is.
When most people think of long term care, they think of nursing homes and assisted living facilities. But there are many different types of long term care, and it’s important to understand what each one entails.
In general, long term care is the type of care that you may require if you are unable to perform activities of daily living (ADLs). These activities include bathing, dressing, grooming, using the toilet, eating, and moving around—for example, getting out of bed and into a chair.
Why would you need it?
It can be difficult to imagine now, but chances are you’ll require assistance with personal care at some point in your life. You may suffer from a disabling accident, chronic illness, or simply reach the age where you are no longer able to care for yourself.
As our population ages, the number of people suffering from cognitive illnesses such as dementia and Alzheimer’s disease is increasing. Currently, 6.2 million Americans have Alzheimer’s and that number is expected to grow to 13 million by 2050. The average life expectancy after an Alzheimer’s diagnosis is 8-10 years, during which time a person will require long term care. The big question is do you have a plan?
Who is affected?
Unfortunately, in many cases, long term care is provided at home by unpaid family members and friends. It can be a huge strain on them both physically and mentally. Unexpected long term care expenses can quickly deplete retirement assets. It is important to note that most long term care is not considered medical care, and therefore not covered by most medical insurance as well as government programs like Medicare.
Long term care needs affect friends and family, not just the individual requiring it. For example, you may depend on your children to care for you, but some recent studies show that the stress of caregiving can have a negative impact on the health of the caregiver. It also takes them away from their current responsibilities such as work, children, and spouses. All of this can be a burden on the entire family.
It’s critical to understand the cost of long term care and the impact a long term care need can have on friends and family, not just the person receiving it.
What factors influence who needs long term care?
It's tough to know how much or what sort of long term care someone will require in the future. There are a number of factors that put people at risk of needing long term care.
- Age: As you grow older, the likelihood of needing long-term care increases
- Gender: Women generally live longer than men, they are more likely to require long-term care
- Family & Housing Situation: People who live alone are more likely to require care from a paid caregiver
- Health: Having diabetes, high blood pressure, or a family history of them increases your chance
- Lifestyle: Increased risk can be caused by a poor diet and lack of exercise
When individuals have a serious, continuing health problem or disability, they frequently require long-term care. The need for long term care can come on suddenly, as in the case of a heart attack or stroke. However, it is most frequently caused by age, illness, or disability progression.
Living a healthy lifestyle
You might delay or avoid the need for long term care by being healthy and active. Consult your doctor about your medical and family history as well as your lifestyle. Your doctor may advise you on ways to improve your health.
Regular physical activity, a healthy diet, non-smoking, and limited alcohol consumption are all excellent ways to stay healthy. In addition, managing your stress can have a profound impact on your overall health and wellbeing. Maintaining an active social life, having a safe place to live, keeping your financial burdens at a minimum, and ensuring that you stay up-to-date on healthcare and dental checkups.
Planning for the Future
Future plans usually include all the things we enjoy or want to do. That is the exciting part. Planning for the unexpected can help you live life on your own terms if something should happen.
Long Term Care may be a good piece to include in your plan.
Why is Long Term Care Planning Important
When you reach a certain age, it’s only natural to worry about the future. You may be asking yourself, “What will happen if I can’t take care of myself anymore?” or “What are my chances of needing long term care?”
It’s hard to think about getting old and not being able to take care of yourself, but the truth of the matter is that 70% of those age 65 and older will need some form of long term care. As life expectancy continues to grow as a result of medical and technological advancements, more and more Americans should start planning now for an unexpected chronic illness, disability, or simply growing older.
What is the likelihood of needing Long Term Care?
The risks of you needing long term care services are high, but how do they stack up against many other unexpected events?
- Fire damaging your home 1 out of 3,000 [.03%]
- Automobile accidents 1 out of 63 [1.6%]
- Being Called Down on The Price is Right 1 out of 36 [2.8%]
- 20yr olds that will suffer short term disability before they retire 1 out of 4 [25%]
- Needing long term care assistance in your lifetime 1 out of 2 [50%]
However, it is important to remember that the need for long term care can happen to anyone, no matter how old they are or what their health is like. It is important to be prepared for the possibility that you may need long term care services at some point in your life.
Common signs you may be at risk of needing LTC
Many people mistakenly believe that only the elderly need long term care. While the need for long term care can arise at any age, there are certain risk factors that may make it more likely that someone will require this type of care. Family history is one important factor to consider. If your parents or grandparents needed long term care, you may be more likely to need it as well. Age and gender are also significant risk factors. Women tend to live longer than men, and the older you are, the greater your odds of needing long term care. Additionally, poor lifestyle choices can raise your risk for a number of chronic conditions and severe chronic conditions increase your chances of needing long term care. While no one likes to think about the possibility of needing long term care, it’s important to be aware of the factors that can increase your risk. That way, you can make informed decisions about your health and plan for the future accordingly.
A Personal Story:
Ida knew the time had come. Her husband, George, had been in declining health for several years as he battled Alzheimer’s. Ida was finding it increasingly difficult to manage his needs even with the help of their adult children. George required round-the-clock care.
Now in their early 70s, Ida and George had planned for this day for almost two decades. When George was first diagnosed, the family was prepared to coordinate their schedules to help him. As his condition progressed and it became clear that George needed the help of home health aides, the decision years ago to purchase long-term care insurance was an enormous relief.
At the time they started planning, the annual cost for an assisted living facility was $20,000. Now, the average cost for that same facility is nearly $54,000 per year, but George’s cognitive care will cost more. Further, the cost is projected to grow at approximately 5 percent per year.
George and Ida purchased a long-term care insurance policy with inflation protection at a time when they were younger and healthier. The impact that their benefit dollars will have on their overall retirement savings is significant. The result of planning when they were still healthy meant that they were able to qualify for meaningful coverage at a rate they could afford over the long term. It was a decision that gave them access to a greater pool of benefit dollars than if they had tried to self-fund their care.
For this couple, their long-term care insurance plan has brought their family tremendous peace of mind at a sensitive time. Ida is especially grateful for the burden it takes off their adult children. Planning for care well before you need it can have a profound impact on overall cost, your care options, and your family’s peace of mind.
How do you plan for the potential need for long term care?
First, think about what type of care you might need and where you would like to receive it. Home care and community-based services can help you stay in your own home, while nursing home care can provide a more structured environment. There are also assisted living facilities and continuing care retirement communities that offer a range of services, from independent living to skilled nursing care.
The best time to plan for long term care is long before you need it. That way, you’re more likely to have choices about how and where you receive care.
Planning for long term care means:
- Will your current location be able to meet your changing demands as you grow older?
- Taking care of yourself so that you can improve your chances for a long and healthy life.
- Knowing the long term care costs and finding solutions to cover them
- By creating legal instructions and a financial power of attorney, you can make sure that you are in charge of decisions about your care and finances.
When it comes to your home, your health, and your finances, you want to be in the driver’s seat. That’s why it’s so important to plan now for retirement — and any future care you may need. Planning for long-term care is one of the smartest decisions you can make, and it’s a gift for your family too. Consider these possible benefits:
- Maintain your financial independence
- Preserve the wealth you’ve worked so hard for over your lifetime
- Avoid burdening family and friends with your care
- Protect your ability to remain independent
- Have access to quality care
- Have more choices down the road
- Directing the decisions affecting you
- Feeling less overwhelmed in the future
- Being ready to help your family and friends
Remember, you don’t have to figure all of this out on your own. We are here to help you get answers to your questions, find what options may work for you, and plan for your future. You want to live your best life now and in the future, we can help you plan for that.
