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 2022, 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?
Long Term Care Facts
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
per person/year.
"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
Physical disability
Advanced age
Stroke
Paralysis
Parkinson's Disease
Cognitive impairment
Dementia
Alzheimer's Disease
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
4. Companionship
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
Residential facilities
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.
2022 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
See Gene's Example
Gene is a 45 year old
dermatologist who has been healthy his whole life. He's married with two teenagers 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.
See Gwen's Example
Gwen, a 48 year old anesthesiologist, is taking care of her mom who has Dementia. She is concerned about her own future health and the potential impact on her family and finances.
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
-
Fixed premiums
-
Pay premiums with retirement funds
-
(IRA, 401K, 403B, ROTH IRA, Old Insurance Policy)
Evan (60) and Erin (60) have two boys in college and are looking to retire in10 years. Their boys intend to move to Asia after college, so they know that family help will not be around if they need any type of long term care.
They took care of Erin's mom for 12 years after a stroke and don't want their possible future care to put a damper on their boy's dreams.
%20(14%20x%208%20in)%20(20%20x%208%20in).png)
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.
-
Medi-Cal only pays for skilled nursing facilities base on space availabity
-
Limited home care available.
