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SpokaneInnovaging2014

CHAPTER ONE n TAKING CHARGE Long Term Care Planning Basics What is the right option for you? By Joel Ferris, Jr., Long Term Care Insurance Career Agent & District Leader for the Spokane Area, Genworth Financial What is Long health will need some form of long term to make sure you fully understand how Term Care? care in their lives. policy benefits work and if it is the right Long term care (LTC) LTCI Sourcebook ance professional will design a policy that*American Association of Long-Term Care Insurance-solution for you. A long term care insur is the assistance or supervision you may You Have Four Options: your specific age, health, local cost of care,is both suitable and affordable based on need when you are #1. FAMILY. This was the typical default and unique family situation (individual or unable to do some of prior to the era of two income households. shared policy). the basic activities of If you think your adult children will care daily living (ADLs)- for you it is important talk this through with Long term care insurance does get more bathing, dressing, eat- them in advance and not just assume. This expensive and harder to qualify for as we ing, continence, toi- type of commitment could involve a child get older. Keep in mind that the average leting and transferring. You also may need leaving a job or severely scaling back to age that people buy long term care insur- help because of a severe cognitive impair- help with your care. Both parent and child ance is 57 nationally, so it is a good idea ment that can be caused by Alzheimer’s need to be realistic. Remember that as soon to put it on your retirement planning list by disease or other brain disorders. as a child starts taking care of a parent the your early to mid-fifties when your health is good and premiums affordable. A need for long term care may result from: relationship changes to that of caregiver and • Accidents • Illness patient which is a whole different dynamic. Words To The Wise • Advanced aging • Strokes #2. GOVERNMENT PROGRAMS. Medicare Do your homework and plan in advance. • Other chronic conditions is not a long term care option. It is only Having a long term care plan in place is Long term care can be received at home, short term care, if you qualify. Medicaid is as important as having a will and medical in community or in an assisted living or the government form of long term care and directive. By pre-planning you control nursing facility. You may qualify for long does require a spend down of your assets your options and don’t leave your care to term care insurance if you can’t perform before you can qualify and there is a 5-year chance. Talk with your family. If you had two ADLs by yourself for at least 90 days or look back so you can’t gift your adult chil- a parent who received long term care, that require substantial supervision if you suffer dren the bulk of your estate and immedi- memory often makes the discussion easier, from a severe cognitive impairment. ately access Medicaid benefits. but remember when adult children say, We are all Living Longer. With this option you may have to ask, if need to ask yourself how realistic it would“Don’t worry, I will take care of you,” you Now What? you are married, what quality of life will my be for them to disrupt their lives to provide As more and more of us are living into our spouse be left with after the estate spend your care. 80’s, 90’s and even 100 the question has down? Ultimately, you need to select the long term to be asked, ‘How am I going to pay for #3. PAY OUT-OF-POCKET. If family is not care option that is right for you. If you can’t expensive long term care if I need it?” an option and you don’t qualify for a gov- qualify for traditional long term care insur- How Much Does ernment program and haven’t transferred ance you may qualify for supplemental insur- Long Term Care Cost? the risk to an insurance provider, then you ance like critical care insurance. Depending First of all, let’s look at the actual cost of on your situation you may find that so-calledwill be paying for long term care out-of- care in Spokane if you needed it now and “combo” or “linked-benefit” insurance prod-pocket. You have to ask yourself, “How had to pay out of pocket. ucts may be right for you that combine lifelong could I pay for care if I had to pay • $49,192 for In-Home Care insurance or an annuity with a long term carefor it myself?” (in the range of $4,000 to • $45,000 for Assisted Living insurance rider.$8,000+ a month in current dollars).“What • $95,630 for Nursing Home Care, would I liquidate first to pay for care?” Other professionals you may want to consult Semi-Private Room #4. LONG TERM CARE INSURANCE. This with include elder law attorneys, CPAs, and • $102,200 for Nursing Home Care, type of insurance will allow you to transfer financial planners (most of whom require that Private Room the risk of the high cost of a long term care their clients at least be aware of the potential *2013 Genworth Cost of Care Survey for Spokane away from your estate assets to an insur- cost of long term care and the effects it can The above costs are average costs for one have on their estates). Other helpful resourcesance provider. Long term care insurance year. The average length of a long termcare isn’t just a commodity like term insurance are SHIBA’s Long Term Care Workbook and event nationally is 2.9 years and much lon- or auto insurance. It is much more nuanced their Consumer Guide to Long Term Care ger if there is a cognitive impairment. and you would be wise to work with a long Insurance which you can get on a PDF for- term care insurance professional (a person mat at www.insurance.wa.gov or by calling If you dive into the statistics you will find who specializes in this type of insurance) 1-800-562-6900 and they will mail it to you. that 44% of men who reach the age of 65 in good health will need some form of long Article by Joel Ferris, Jr., Long Term Care Email: jferris@genworthltc.com. term care in their lives, and 72% of women Career Agent & District Leader for the Website: genworth.com/joelferris who reach the age of 65 and are in good Spokane Area, Genworth Financial. Phone: 509-466-3991 THE OPINIONS OFFERED IN THIS ARTICLE ARE FOR YOUR CONSIDERATION ONLY. TO FURTHER EXPLORE THIS TOPIC, THE PUBLISHER ENCOURAGES YOU TO CONTACT TRUSTED PROFESSIONALS. 31


SpokaneInnovaging2014
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