Long Term Care Insurance

Long Term Care Insurance

Long-term care is a range of services and supports an individual may need to meet their personal care needs. Most long-term care is not medical care, but rather assistance that a person needs because he or she has a long-term care impairment. Assistance with the basic personal tasks of everyday life sometimes called Activities of Daily Living (ADLs), such as:

  • Bathing
  • Dressing
  • Using the toilet
  • Transferring (to or from bed or chair)
  • Caring for incontinence
  • Eating

Other common long-term care services and supports are assistance with everyday tasks, sometimes called Instrumental Activities of Daily Living (IADLs) including:

  • Housework
  • Managing money
  • Taking medication
  • Preparing and cleaning up after meals
  • Shopping for groceries or clothes
  • Using the telephone or other communication devices
  • Caring for pets
  • Responding to emergency alerts such as fire alarms

 

Who Needs Care?

There are several factors that affect the possibility that you will need care:

Health Status
  • Chronic conditions such as diabetes and high blood pressure make you more likely to need care
  • Your family history such as whether your parents or grandparents had chronic conditions, may increase your likelihood
  • Poor diet and exercise habits increase your chances of needing long-term care
Disability
  • Having an accident or chronic illness that causes a disability is another reason for needing long-term care
  • Between ages 40 and 50, on average, eight percent of people have a disability that could require long-term care services
  • 69 % of people age 90 or more have a disability
Living Arrangements
  • If you live alone, you’re more likely to need paid-care than if you’re married, or single, and living with a partner
Age
  • The older you are, the more likely you will need long-term care
  • 70% of people turning age 65 can expect to use some form of long-term care during their lives.
Gender
  • Women outlive men by about five years on average, so they are more likely to live at home alone when they are older

 

Planning Considerations

Before Age 50

It’s never too early to start planning for your long-term care. If you’re less than 50, there are just a few simple things that you should know and can do today, that will make tomorrow a whole lot easier.

Things You Should Know
  • Medicare only pays for long-term care if you require skilled services or rehabilitative care and Medicare does not pay for non-skilled assistance with Activities of Daily Living (ADL), which make up most of the long-term care services.
  • Long-term-care is more expensive than you may think and you will likely be responsible for paying for the care you will require.
  • By obtaining an Advanced Care Directive you can inform your family or loved ones about how to make important health decisions for you, should you no longer be able to make those decisions for yourself.
Things You Can Do
  • Plan how you will pay for care
  • Costs of Care
  • What is Long-term care Insurance
  • Paying Privately
  • Obtain an Advanced Care Directive
Living Arrangements
  • Chronic conditions such as diabetes and high blood pressure make you more likely to need care
  • Your family history such as whether your parents or grandparents had chronic conditions, may increase your likelihood
  • Poor diet and exercise habits increase your chances of needing long-term care

 

Between the ages of 51 and 64

To help you best plan for your long-term care, between the ages of 51 and 64, we’ve pulled together a list of important things you should know and can do now that will make tomorrow a whole lot easier.

Things You Should Know

Medicare only pays for long-term care if you require skilled services or rehabilitative care and Medicare does not pay for non-skilled assistance with Activities of Daily Living (ADL), which make up most of the long-term care services.

  • Long-term-care may cost more than you think.
  • There are several ways to receive care and many different settings in which to receive it.
  • Where you live matters – your ability to stay at home may depend on the layout of your home, especially the bathrooms.
  • Planning for long-term care can protect your family from the financial impact of paying for care and the emotional impact of making decisions for you.
  • By obtaining an Advanced Care Directive you can inform your family or loved ones about how to make important health decisions for you, should you no longer be able to make those decisions for yourself.
Things You Can Do
  • Obtain an Advanced Care Directive
  • Have a plan for how you will pay for services
  • Costs of Care
  • What is Long-term Care Insurance
  • Using Life Insurance to Pay for Long-term Care
  • Annuities
  • Reverse Mortgages
  • Consider home modifications
  • Learn how you may be able to reduce some risks to your brain

 

 After Age 65

To help you best plan for your long-term care, after age 65, we’ve pulled together a list of important things you should know and can do now to help you prepare for later.

Things You Should Know
  • Medicare only pays for long-term care if you require skilled services or rehabilitative care and Medicare does not pay for non-skilled assistance with Activities of Daily Living (ADL), which make up most of the long-term care services. Read the section on Medicare for more information.
  • There are several ways to receive care and many different settings in which to receive it.
  • You may be able to receive care from providers and/or local programs in your community.
  • The need for long-term care often follows a fall. By learning to prevent a fall, you may delay your need for long-term care and even prolong your time at home.
  • Living close to children or other family is often important when long-term care services are needed.
  • By obtaining an Advanced Care Directive you can inform your family or loved ones about how to make important health decisions for you, should you no longer be able to make those decisions for yourself.
  • While insurance may or may not be possible there are other options such as a reverse mortgage, or savings.
  • Modifying your home may allow you to stay there longer, as you age.
  • If you plan on moving to a facility consider the different types of facilities, their associated costs, amenities, and locations.
Things You Can Do
  • Obtain an Advanced Care Directive
  • Consider home modifications
  • Consider different types of facilities
  • Plan for how you will pay for services
  • Costs of Care
  • What is Covered by Health & Disability Insurance
  • Using Life Insurance to Pay for Long-term Care
  • Reverse Mortgages

 

Consequences – Personal and Financial

Personal Consequences

Caregiver, a caregiver is an unpaid individual (a spouse, partner, family member, friend, or neighbor) involved in assisting others with activities of daily living (ADLs), coping with a cognitive impairment and/or other medical tasks. Providing care seriously impacts the emotional and physical well being of the caregiver. Formal caregivers are paid care providers providing care in one’s home or in a care setting (day care, residential care facility, etc.). Recent data shows: 65.7 million caregivers make up 29% of the U.S. adult population providing care to someone who is ill, disabled or aged.1 52 million caregivers provide care to adults (aged 18+) with a disability or illness.2 Approximately 34.2 million Americans have provided unpaid care to an adult age 50 or older in the prior 12 months 3, and more than 15 million Americans provide unpaid care for people with Alzheimer’s disease and other dementias.4 More women than men are caregivers, 60%. Eight in 10 are taking care of one person (82%).5 Male caregivers are less likely to provide personal care, but 24% help a loved one get dressed compared to 28% of female caregivers; 16% of male caregivers help with bathing versus 30% of females; and 40% of male caregivers use paid assistance for a loved one’s personal care.

Out of the 43.4% of caregivers who care for an older family member, approximately 14.5 million are men.6 The gender balance shifts to close to equal participation among 18- to 49-year-old care recipients (47% of caregivers are male), while among the 50+ recipients, it tips to females (32% male, 68% female).7 Research suggests that the number of male caregivers may be increasing and will continue to do so due to a variety of social demographic factors.8 The Home Alone study—a study of family caregivers who provide complex chronic care found that nearly half of the 1,677 caregivers surveyed (46% or 777) performed medical & nursing tasks. More than 96% of those also provided activities of daily living (ADLs) supports (e.g., personal hygiene, dressing/undressing, or getting in and out of bed) or instrumental activities of daily living (IADLs) (e.g., giving prescribed medications, shopping for groceries, providing transportation or using technology) supports, or both. Of these caregivers, nearly two-thirds (501) did all three types of tasks. Of the non-medical family caregivers, two-thirds (605) provided IADL assistance Only.

A Gallup survey found 72% of caregivers cared for a parent, stepparent, mother-in-law or father-in-law, and 67% of caregivers provided for someone age 75 or older.10 Most care recipients live in their own homes (58%), and one in five (20%) live in their caregiver’s home.11 Among working caregivers caring for a family member or friend, 69% report having to rearrange their work schedule, decrease their hours or take an unpaid leave in order to meet their caregiving responsibilities.12 57% turned down a promotion, 4% choose early retirement and 6% gave up working entirely.

Difficulties due to work and caregiving are even more challenging among those caring for someone with dementia.13 Caregiving has been shown to reduce work productivity by 18.5% and increase the likelihood of leaving the workplace.14 The cost of informal caregiving in terms of lost productivity to U.S. businesses is $17.1 to $33 billion annually. Costs reflect absenteeism ($5.1 billion), shifts from full-time to part-time work ($4.8 billion), replacing employees ($6.6 billion), and workday adjustments ($6.3 billion).15 A Gallup poll shows caregivers who do not live with their care receiver live the following distances from those for whom they care.16

  • 10 miles or less 66%
  • 11–25 miles 13%
  • 26 miles or more 21%

9 in 10 (96%) caregivers of veterans are female, and 70% provide care to their spouse or partner. Of veterans’ caregivers, 30% care for 10 years or more, compared to 15% of caregivers nationally. 88% report increased stress or anxiety as a result of caregiving, and 77% state sleep deprivation as an Issue.17 Some 22% of informal caregivers to the elderly are depressed—around twice the rate in the population as a whole.18 55% of caregivers who live with dementia patients suffer clinical depression.19

1 The National Alliance for Caregiving and AARP (2015), Caregiving in the U.S. National Alliance for Caregiving. Washington, D.C.

2 Coughlin, J., (2010). Estimating the Impact of Caregiving and Employment on Well-Being.

Outcomes & Insights in Health Management, Vol. 2; Issue 1—Updated: November 2012

3 The National Alliance for Caregiving and AARP (2015), Caregiving in the U.S. National Alliance for Caregiving. Washington, D.C.

4 Alzheimer’s Association, 2015 Alzheimer’s Disease Facts and Figures. Available at

https://www.alz.org/facts/downloads/facts_figures_2015.pdf.

5 The National Alliance for Caregiving and AARP (2015), Caregiving in the U.S. National Alliance for Caregiving. Washington, D.C.

6 The National Alliance for Caregiving and AARP (2009), Caregiving in the U.S. National Alliance for Caregiving. Washington, D.C. — Updated October 2012.

7 The National Alliance for Caregiving and AARP (2009), Caregiving in the U.S. National Alliance for Caregiving. Washington, D.C. — Updated October 2012.

8 Kramer, B. J. & E. H. Thompson, (eds.), Men as Caregivers, (New York: Prometheus Books, 2002). —Updated: November 2012.

9 Home Alone: Family Caregivers Providing Complex Chronic Care, AARP with United Health Hospital Fund October 2012 — Updated: November 2012.

10 Gallup Healthways Wellbeing Survey, Most Caregivers Look After Elderly Parent; Invest a Lot of Time, July 2011 — Updated: November 2012.

11 National Alliance for Caregiving and AARP (2009), Caregiving in the U.S., A Focused Look at Those Caring for Someone Age 50 or Older, Bethesda, MD: National Alliance for Caregiving, Washington,D.C.—Updated: November 2012.

12 Valuing the Invaluable: 2011 Update: The Economic Value of Family Caregiving. AARP Public Policy Institute.—Updated: November 2012.

13 National Alliance for Caregiving and AARP (2009), Caregiving in the U.S. A Focused Look at Those Caring for Someone Age 50 or Older, Bethesda, MD: National Alliance for Caregiving, Washington, D.C.—Updated: November 2012

14 Coughlin, J., (2010). Estimating the Impact of Caregiving and Employment on Well-Being. Outcomes & Insights in Health Management, Vol. 2; Issue 1—Updated: November 2012.

15 MetLife Study of Working Caregivers and Employer Health Costs: National Alliance for Caregiving. 2010—Updated: November 2012.

16 Gallup Healthways Well being Survey, Caregiving Costs U.S. Economy $25.2 Billion in Lost Productivity, July 2011—Updated: November 2012.

17 National Alliance for Caregiving and United Health Foundation, Caregivers of Veterans: Serving on the Home Front (2010) — Updated: November 2012.

18 See, for example, Foundation for Accountability, A Portrait of Informal Caregivers in America, Robert Wood Johnson Foundation, Princeton http://www.markle.org/resources/facct/doclibFiles/documentFile_432.pdf.

19 End-of-Life Care and the Effects of Bereavement on Family Caregivers of Persons with Dementia,Richard Schulz, Ph.D., Aaron B. Mendelsohn, Ph.D., William E. Haley, Ph.D., Diane Mahoney, Ph.D.,Rebecca S. Allen, Ph.D., Song Zhang, M.S., Larry Thompson, Ph.D., and Steven H. Belle, Ph.D., for the Resources for Enhancing Alzheimer’s Caregiver Health (REACH) Investigators, November 13, 2003.

20 N. Christakis, P. Allison, “Mortality after the Hospitalization of a Spouse,” The New England Journal of Medicine, vol. 354, issue 7 (February 16, 2006), pages 719-730.

21 R. Schulz, S. Beach, B. Lind, L. Martire, B. Zdaniuk, C. Hirsch, S. Jackson, L. Burton, “Involvement in Caregiving and Adjustment to Death of a Spouse: Findings From the Caregiver Health Effects Study,” JAMA, June 2001; issue 285, pages 3123–3129 http://jama.amaassn.org/cgi/reprint/285/24/3123.

22 Evercare Study of Caregivers in Decline, National Association of Caregiving, 2006 https://www.caregiving.org/pdf/research/Caregivers%20in%20Decline%20Study-FINAL-lowres.pdfhttps://www.caregiving.org/pdf/research/Caregivers%20in%20Decline%20Study-FINAL-lowres.pdf

23 Sue Shellenbarger, The Wall Street Journal, July 17, 2003.

Financial Consequences

The second consequence is financial: Paying for care disrupts every plan to secure your family’s future financial viability. The financial consequences of a long-term care event do not just flow from the individual care needs. Shifting income to pay for care has a direct impact on the primary earner’s ability to keep your financial commitments, especially to continue to provide for your family’s ongoing lifestyle. If care lasts long enough, or as it becomes more complex, paying for care may lead to an unintended invasion of principal. The problem is that these funds were never meant to pay for care. 

“Simply put, paying for care will disrupt every plan you created to secure financial viability moving into the future.”

We are Certified in Long-Term Care and our goal is to design a plan that will allow you to remain safe in the community (at home or in an assisted living facility) while protecting the emotional, physical, and financial well-being of those you love.

Contact us today for a no obligation planning meeting.

Click here to visit LongTermCare.gov for more information

Click here to visit the LongTermCare.gov glossary

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