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Long-Term Care in a Nutshell
What is Long-Term Care?
Long-Term Care (also called Custodial Care) is…care that is primarily for
people who need assistance w/ ADL's (activities of daily living):
Bathing - Dressing - Walking - Transferring - Eating - Toileting - Continence
If you were to require assistance with I or 2 of these ADL'S, you would be in
need of Long-Term Care. These are usually associated with chronic conditions.
This care can be delivered in a variety of locations;
- Nursing Homes
- Assisted - Living Facilities
- Your Home
95% of those in Nursing Homes today receive Custodial Care!
Should I Consider Buying a Policy?
You're planning for everything you want in retirement. Travel. Recreation. A
relaxed, independent lifestyle. And you're counting on your assets to make it
possible. But a serious accident or extended illness after you retire could
change your lifestyle. In fact, long term care cost can quickly consume assets
you've worked a lifetime to accumulate. Long Term Care Insurance can help
preserve the assets that are the foundation of your personal independence - and
your most important plans.
Over age 65, the greatest financial risk a person faces is
Long-Term Care
Who Pays the Bills?
In most cases, long-term care recipients and their families - people like you
- bear the cost of long- term care. The Health Insurance Association of America
estimates that about one-third of all nursing home costs are paid out- of-pocket
by individuals and their families. Eight percent is paid by Medi- care, for
short-term skilled nursing home care following hospitalization. More than half
of all nursing home costs are paid by Medicaid (Medi-Cal in California), after
nursing-home residents spend-down their own savings to national poverty
level guidelines and become eligible.
Let's take a look at the most important things you need to know about
Long-Term Care.
1. AVERAGE COST OF CARE
- Nursing Home $3600.00 + per month
- Assisted Living $2200.00 + per month
- Homecare $12.50 + per hour
- 24 hour Live-in $140.00 + per day
- Homecare average $3600.00 + per month
2. RISK OF NOT CARING LONG-TERM CARE INSURANCE
Without any protection you can expect to use your own money. If your spouse
goes into a facility the state (Medi-Cal) will typically allow the other
"at home spouse" to keep, in 1999:
1 car, 1 home, all the combined income "up to" $2049 per month, and
$81,960 in total assets.
Single or widowed indi- viduals entering a facility may keep only $35 per
month and $2000 in total assets. Anything that exceeds those limits must be
"Spent Down" before any state benefits are paid
3. STATISTICS OF USING LONG-TERM CARE
Those at home needing assistance:
- Ages 65-74 - 17%
- Ages 75-84 - 28%
- Over age 85 + - 49%
Average stay of all those using Nursing facilities is 2-3 years.
Over age 65 the greatest financial risk a person faces is Long-Term Care. The
older we get the higher the probability we have of using the care. Be realistic.
Address the risks, like you have in the past, and put them behind you. Keep
control of all your care options.
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