Working Caregiver- Consider Money Guard

MoneyGuard - a valid option over long term care insurance

Time for What Ifs - You have Options

Most Americans and Texans still don't see the need to prepare for long-term care, though today the average retirement could span 30 years or more. For my parents, they were retired a good 26 years. Although, they did not (in my opinion) set up a good long term care program, they did alright. But most of us today, an actual 69% of individuals still working have put aside something for retirement, only 17% were very confident they would have enough savings to cover the potential costs of long-term care. What about you? Do you know? There are many options to consider and let's look at a few right now!

Here are some considerations to keep in mind while looking at long term care.

  • Longer life expectancies
  • Less reliance on guaranteed sources of income, such as pensions or Social Security
    Increasing healthcare costs
  • The long-term viability of government programs like Medicare/Medicaid

And Americans have more than a 70% chance of needing some form of long term care after age 65

We are aware there is an urgent need to plan ahead for retirement. The same principle applies to long-term care. According to the Congressional Budget Office, says you will pay, if not able to care for yourself. These figures are estimates based on national average costs (in some geographic areas the costs are much higher). And be aware that these expenses are not covered by medical insurance.

Long Term Care

  • Basic Living Expenses a few times a week - an aide to help with bathing, meals, cleaning $21,600 a year
  • Nursing Home - One year in a nursing home can average more than $70,000 for a private room  $70,000 a year
  • Full time Home Care - Care that takes place in your home and provided by professionals around-the-clock, the average annual cost is $155,520.

Did you know that 43% of people receiving long-term care are under the age of 65? Many different scenarios can be described as long term care:

Home care includes medical care - nurses who pay in-home visits if you can’t go out, as well as help around the home. Home health aides or personal care service workers can visit daily to help you bathe and get dressed. They can also assist with housekeeping, meals, and shopping.

Assisted living is for those who need more help than senior housing offers, but want to remain as independent as possible. Staff can make sure residents take their medications on schedule, help them with bathing and dressing, and provide some medical care.

Adult care programs offer social interaction and meals from one to five days a week, depending on the program. Some provide transportation to and from the care center. And some offer medical services, such as help taking medications or checking blood pressure.

Nursing homes offer 24-hour nursing care for those recovering from an illness or an injury. They also offer end-of-life care. Nursing home services are mostly for people who need more medical care than other long-term care options can offer, such as wound care, rehabilitative therapy, and help with respirators or ventilators.

Consider the options for funding long-term care

Long-term care insurance, obtained through your financial advisor, which covers future medical expenses specifically related to long-term care. Premium amounts vary depending on daily benefits and benefit periods selected by the policyowner. (Long-term care insurance policies generally have exclusions, limitations, and reductions. Check your outline of coverage for more information.)

Medicare, a medical reimbursement program administrated through Social Security, which typically covers the first 100 days of skilled nursing home care for qualifying people over age 65. Medicare does not cover intermediate nursing care, prolonged home healthcare, or many in-home services.

Personal savings, or the assets you've managed to set aside after the bills are paid. Includes liquid assets, such as CDs, mutual funds, individual stocks, and individual bonds.

Retirement income from 401(k)s, 403(b)s, or pension plans.

Cash value life insurance, which allows you to borrow against the cash value in the policy to cover large expenses.

You should discuss the pros and cons of each option with your financial advisor, who can provide more detailed information, including associated costs and fees as they pertain to each alternative.

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Moneyguard                            Contact John Berlet