Long Term Care Solutions

 "Let your family manage the long term care, not provide the care"

Long term care affects the family and finances

In 2020, 53 million Americans were caregivers to family members or friends.

Are you jeopardizing your child's future happiness by obligating them to take care of you? 

Could your retirement funds be depleted by

health care costs?

Did You Know?

7 out of 10 people age 65 and over will need long term care help.

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Only 10% of Americans have

pre-planned or saved for long term health care costs.

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Long term care costs in the San Francisco area is expensive, and ranges from $96,000-$130,000

per person/year.

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"The fact remains that most of us are anesthetized to the true cost and the true value of long term care planning" 

Long term care is help for daily tasks, we usually do on our own.

Examples of triggers

for long term care

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Physical disability

Advanced age

Stroke

Paralysis

Parkinson's Disease

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Cognitive impairment

Dementia

Alzheimer's Disease

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Where do people receive long term care?

There are three levels of care which extend from help at home to
needing around the clock assistance.

 Long Term Care Costs in the Bay Area

Long term care costs in the Bay Area is

one of the highest in the nation.

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Inflation increases costs 3-5% per year.

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2021 costs

Home care:                       $78,000 per year

Assisted living facility           $59,000 per year

Skilled nursing facility          $160,000 per year

Average Length of Long Term Care Needed

Length of care depends on the individuals overall health and cognitive function.

Men                                

Women                          

Alzheimer's Disease   

Parkinson's Disease 

4 years                              

5 years                          

8 years   

11 years

Pre-planning long term care options

Use life insurance for long term care

Life insurance with a long term care rider can advance death benefits early to pay for care.

• Accelerate the amount of money needed or the full benefit.

• Paid as a lump sum or monthly.  ​

• No need to payback advanced benefits

• Depending on policy, prorated or full death benefits

Gene is a 45 year old
dermatologist with a
wife and two children
in high school.

Gene has a massive stroke, can't work, needs costly care at home and still has monthly bills.

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He decides to use his life insurance policy to offset his income loss.

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With his $500,000 permanent life insurance policy, he activates the chronic illness rider and submits his physician's report to the life insurance carrier.

Gene advances his full life insurance death benefit of $500,000 and receives 

$10,000 per month for 50 months.

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The life insurance provides Gene and his family a financial cushion to keep his family's lifestyle intact and relieve the pressure to return to work.

Traditional Long Term Care Insurance

Traditional long term care insurance provides a pool of money that pays for care and includes a care coordinator who helps guide the family on care options.

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• Home care, assisted living facility, skilled nursing.​

• Elimination days are an out of pocket deductible (30, 60, 90 days) 

• Coverage averages 2-5 years

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• Annual inflation protection increases monthly benefits (2%, 3%, 5%) per year.  ​

• ​Reimbursement policy (family pays first)

• Premium rates not guaranteed.

• One person per policy.

​

Gwen, a 48 year old anesthesiologist,

is taking care of her mom who has dementia. She is concerned about her own health and the potential impact on her family and finances.​

Modified Long Term Care Insurance

Modified long term care insurance is similar to traditional coverage, but it gives an additional bucket of money in case the funds run out for one person.

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• Monthly benefits

• Elimination period (30, 60, 90 days)

• Coverage of 2-6 years or lifetime

• Reimbursement​

• Inflation protection 2%, 3%, 5%​

• Premiums not fixed

PLUS

• Two people (married or partnership) on one policy

• Additional pool of money in case one partner runs out of funds

Rose (56) and Riley (60) are real estate agents who are eyeing retirement.  They have three grown children who live in other parts of the country. 

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They know the physical, emotional, and financial costs of long term care because Riley's mother, who has Alzheimer's disease, currently lives with them.

Hybrid Long Term Care Insurance

Hybrid long term care insurance offsets long term care costs but removes the uncertainty of traditional policies "use it or lose" by returning premium if you don't want it, and providing a life insurance benefit in the event long term care was never used.

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Same benefits as traditional long term care PLUS unique features:

• One policy covers 2 people​

• Unlimited lifetime benefits option​

• Return of premium option​

• 2nd to pass life insurance benefit​​

• Fixed premiums​

• Pay premiums with retirement funds

• (IRA, 401K, 403B, ROTH IRA, Old Insurance Policy)

Medi-Cal/Medicaid

California state run medical insurance for low income, disabled individuals, families, or seniors.​

• Income must fall below threshold to qualify for Medi-Cal eligibility.

• Skilled nursing on limited space availability.

• Limited home care available.