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.
Only 10% of Americans have
pre-planned or saved for long term health care costs.
Long term care costs in the San Francisco area is expensive, and ranges from $96,000-$130,000
"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
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.
Home Health Care
Most common use of long term care
Care in your own home
1. Stand by assistance
2. Health and wellness monitoring
3. Cooking and housekeeping
Senior Assisted Living
Second level of care when the client isn't able to live on their own
Living facility for residents
1. Stand by assistance 24 hrs day
2. Living, meals, & housekeeping
3. Exercise and recreational activities
4. Social interaction
5. Includes "Memory Care" facility
Skilled Nursing Facility
When medical and rehabilitation care is necessary
1. 24 hr day stand by assistance
2. Health and wellness monitoring
3. Living, meals, and housekeeping
4. Medical professional 24 hrs day
5. Rehabilitation and medical care
Long Term Care Costs in the Bay Area
Long term care costs in the Bay Area is
one of the highest in the nation.
Inflation increases costs 3-5% per year.
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.
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.
He decides to use his life insurance policy to offset his income loss.
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.
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.
Home care, assisted living facility, skilled nursing.
Elimination days are an out of pocket deductible (30, 60, 90 days)
Coverage averages 2-5 years
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.
Elimination period (30, 60, 90 days)
Coverage of 2-6 years or lifetime
Inflation protection 2%, 3%, 5%
Premiums not fixed
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.
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.
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
Pay premiums with retirement funds
(IRA, 401K, 403B, ROTH IRA, Old Insurance Policy)
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.