Medicare, Long Term Care, Life insurance, Annuities and More
Senior Benefit Planning for Peace of Mind
There are many facets to Senior Benefits. This site deals primarily with Long Term Care planning.
For a Humorous Medicare Guide that is loved by multitudes of people, click here. For general educational Medicare information and tutorials on how to enroll in parts A and B etc. and other ancillary coverage, click on www.medicareeasy.net.
The Fat and Skinny on Long Term Care
Medicare does not cover Long Term Care (hereafter called LTC) and most people don't have LTC coverage so LTC is the most gigantic expense many seniors will face. And it's not a pretty face.
What are your odds on needing LTC? About 70% of those over age 65 will need some type of LTC services during their lifetime. And over 40% happens in a nursing home. That is a whole lotta odds.
Many people just rely on the Government for Long Term care. However, their help may mean spending down a lot of your assets. Not an ideal way to go if you can help it. Call (909)790-8622, to find out if theire is a solution for you.
A 95 year-old joked that the "Golden Years" have a lot of lead. Your years should also have a lot of joy in it, but to help that it may take a little planning!
FACTS ABOUT LONG TERM CARE
What is the average time length of LTC claims?
- A little over 40% last less than a year.
- Of those lasting more than a year, the average time is 3.9 years.
- About 16% last more than 5 years.
What triggers the need for LTC?
ADLs – Activities of Daily Living that you can't do.
In other words, doing 2 or more of the following unpleasant honkers:
Not being able to:
- Get around,
- Not drop a load in your pants, toileting etc
MORE FACTS ABOUT LONG TERM CARE
What are some common reasons that cause loss of ability to do ADLs ?
- Heart & Lung Issues,
- In Laws (no scientific proof on this one, but you have to wonder...)
What are ways to use LTC coverage/services?
- In home
- Adult Day Health Care
- Assisted Living
- Skilled Nursing Facility
LONG TERM CARE COVERAGE OPTIONS
TRADITIONAL LONG TERM CARE INSURANCE
Best form of coverage. However, it has big obstacles.
- Premiums are not set level for life, and as costs go up, premiums skyrocket.
Massive increases are common.
- It's fairly hard to qualify; a lot of people get turned down.
- Because of the above problems, fewer and fewer companies even offer it.
ASSET BASED LONG TERM CARE
Asset Based LTC – More people are looking at this route, since it is more reasonable to afford and qualify for. Can be funded with annual or monthly payments or a lump sum investment.
- First option is that you fund a special life insurance policy, designed with LTC in mind, with living benefits. Still have to qualify health wise, but it's not as hard as Traditional LTC. If LTC benefit triggered, it pays out some of the death benefit early, while still living. Tax free! What ever is not used, or if no amount of benefit is ever used, it's passed to heirs tax free when the insured dies. (Many LTC claims end due to death.)
- Second option is to fund an annuity with much higher benefit payouts in the event of a LTC claim. Easiest to qualify for. May be tax advantaged if set up right. Unused money still belongs to the insured or their heirs.
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