Planning for Long Term Care should be part of everyone's financial decision-making process. We all need to understand the problems of caring for someone who cannot care for themselves. In addition to wondering who would provide care for ourselves, we should all realize that our parents, spouse, or even children may need care. Without planning, tough decisions will have to be made on an emergency basis, and necessary funds may not be readily available to provide the required care. In addition to worrying about caring for others, the biggest responsibility we have is to plan for our own care.

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• LTC Quote
• LTC Descriptions
  • What is Long Term Care?
  • Where are Long Term Care services received?
  • Who provides Long Term Care Services?
  • What does all this cost?
  • Who pays for Long Term Care?
  • What are my chances of needing some kind of Long Term Care?
  • What are your experiences with Long Term Care?
  • Three Ways to Pay
  • Why should you plan?
    
    

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• LTC Glossary

What is Long Term Care?

Long Term Care is the inability to care for oneself because of prolonged illness, disability, or the effects of old age. Long Term Care is the assistance needed to perform daily living:

• Bathing
• Dressing
• Eating
• Transferring
• Toileting
• Continence

Where are Long Term Care services received?

Long Term Care services may be received wherever you want, based on your ability to pay:

• Nursing Home
• Assisted Living Facility
• Adult Day Care Center
• Hospice
• Extended care facility
• Respite Center Or
• Your own home

Who provides Long Term Care Services?

Services may be provided by:

• Nurse( RN, LPN, LVN)
• Physical Therapist
• Respiratory Therapist
• Occupational Therapist
• Speech Therapist
• Dietitian
• Licensed Home Health Care Agency: providing home health aide services, home hospice services or homemaker services (meal preparation, personal laundry, light housekeeping, grocery shopping.

If funding is not available, any or all of the above services may need to be provided by a family member or friend.

Most Long Term Care services received are custodial, which are defined to be those services that help someone with daily living activities.

What does all this cost?

The average cost of Long Term Care ranges from $36,000 to over $100,000 annually. Obviously, costs will vary from state to state and locale to locale. For example, recent studies of the NY/NJ metropolitan area indicate that current costs for both nursing home and home health care may be from $200 to $350 daily. It is important that you become familiar with what such costs might be in your geographic area.

Who pays for Long Term Care?

Here is the reality:

• Out-of-Pocket: 32.5%
• Medicaid: 37.5%
• Medicare: 17.8%
• Private Health Insurance: 5.5%
• Other: 6.3%

Health Care Financing Administration Office of the Actuary:
Data from the Office of National Health Statistics, 1997

Will you need to use the funds you saved to provide a comfortable retirement for you and your spouse? Will you need to liquidate assets accumulated for your enjoyment and the enjoyment of your family to provide this kind of care? Remember, you could be writing a check for $5,000 to $10,000 a month. Which assets in your portfolio will you sell first?

What are my chances of needing some kind of Long Term Care?

The risk of needing Long Term Care is probably much greater than most people realize. Recent studies report that of those people who are 65 or older today, 2 out of every 5 people will need nursing home care at some time in their lives (1) and will be confined for care for an average of 19 months (2).

1. 1996 Guide to Long Term Care, HIAA
2. "Avoiding Fraud When Buying Long Term Care Insurance: A guide for consumers and their Families." The Personal Injury Law Page, 1996.

What are your experiences with Long Term Care?

"This could never happen to me!"
The major obstacle to planning for Long Term Care is our unwillingness to accept the fact that we may someday need help with the basic activities of our daily lives.

People between the ages of 18 and 64 make up 40% of the people needing Long Term Care.* Stroke, accident, illness, and even the normal effects of aging may trigger the need for assistance. Most people carry adequate amounts of insurance to protect their assets against natural disasters such as fire, floods, and earthquake, hoping the need to submit a claim never occurs. Protecting your assets from the draining effects of Long Term Care costs is equally important.

*Life Insurance Selling, December 1995

Three ways to pay…
There are only three ways to pay for Long Term Care:

1. You may liquidate assets,
2. You may qualify for Medicaid (after your assets have been depleted), or
3. You can cover the risk with Long Term Care Insurance.

Why should you plan?

1. To preserve your independence. Adequate insurance coverage can provide you with the ability to choose from a variety of care services and facilities. By having funds available when they are needed, there's no need to ask friends or family members to care for you during convalescence.
2. To protect your financial future. With adequate coverage, you will not need to liquidate retirement savings and family assets.

TODAY YOU CAN CONTROL THE DIGNITY OF YOUR FUTURE AND THE LIFESTYLE YOU WISH TO PRESERVE FOR YOURSELF AND YOUR FAMILY. PLANNING FOR LONG TERM CARE CANNOT WAIT UNTIL YOU NEED THE COVERAGE. YOU DECIDE.