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Long-term care.Long-Term Care Insurance has now become Custodial care or Personal care. Long-term care is the assistance needed over an extended period of time to manage, rather than cure, a chronic condition.
It's about keeping you at home as long as possible. Long-term care is not covered under health insurance policies (Medicare or Medicare supplemental policies).
Long-term care is primarily the assistance or supervision you may need when you are not able to do some of the basic Activities of Daily Living (ADLs) such as bathing, dressing, toileting or moving from a bed to a chair. You might need assistance with ADLs if you suffer from an injury like a broken hip, prolonged illness, a stroke or frailty. You may also need long term care because of mental deterioration, called "cognitive impairment" that can be caused by brain disorders such as Alzheimer's or a mental illness.
How Much Does Long-Term Care cost?
In 2009, the cost of care in California averaged $220 a day with an annual cost of $79,200. If you self-insure the cost for home care with dignity, you will pay $237,600 in three years. You can see this can quickly go through your assets. Instead, use someone else's money and get Long-Term Care Insurance.
There are three options:
- Using personal savings
- Counting on government programs (Medicare)
- Or purchasing private insurance
Using personal savings is the equivalent to self-insuring. Personal funds are at risk in order to cover the potential cost of care.
The government Medicare pays on average 23 days of care under its nursing home benefit, and benefits are not available after 100 days.
The last option is private insurance. Some life insurance policies allow for the acceleration of death benefit to pay for long-term care expenses. Annuities can also provide protection for personal care without the need for a medical exam. There are also large deposit-based plans that essentially prepay expenses and return a portion of the premium if long-term care expenses are not needed. However, the most direct and efficient insurance to protect against the risk is Long-Term Care Insurance.
We mainly work with one major Long-Term Care provider: Genworth, because they provide for the California Partnership program. We also work with Prudential and other carriers depending on your needs and qualifying circumstances.
Coming Up!
Join
us for our next wealth management session on "Estate Planning: Dos and Don'ts." February 23, 2012 from 12:00-1:30pm. Oakmont, CA. Lunch provided!
Meyers Financial supports Chemo Caps for Kids,
a Commonwealth Financial Network program that provides hand-knit hats to children undergoing cancer treatment.
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- Eleanor Roosevelt
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