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Long Term Care Insurance

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  1. Long Term Care Insurance Can your financial planning be resolved without planning for this significant exposure?

  2. The Basics The need for Long Term Care affects the entire family. It is a critical social issue as only 7% of our population has this coverage and 70% of our population is going to need some form of care at some point in their lives. The need for long term care may happen to anyone…your spouse, a parent, a sibling. It can result from being chronically ill, from a severe cognitive impairment or something as unexpected as an accident or injury. Many important questions arise: • Who will take care of me? • Will I be able to stay at home? • What pot of money do I take from to pay for care?

  3. Cost of Care • Some average costs for long-term care in the United States (in 2013) were: • $205 per day or $6,235 per month for a semi-private room in a nursing home • $229 per day or $6,965 per month for a private room in a nursing home • $3,293 per month for care in an assisted living facility (for a one-bedroom unit) • $21 per hour for a home health aide • $19 per hour for homemaker services • $67 per day for services in an adult day health care center **Consumer Reports

  4. How much care will you need • The duration and level of long-term care will vary from person to person and often change over time. Here are some statistics (all are “on average”) you should consider: • Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and supports in their remaining years • Women need care longer (3.7 years) than men (2.2 years) • One-third of today’s 65 year-olds may never need long-term care support, but 20 percent will need it for longer than 5 years • Those with congnitive issues typically have much longer periods of care.

  5. Types of long-term care services Type of Care • Nursing Home • Assisted Living • Home Health Care • Adult Day Care

  6. Who Pays for Long Term Care - Medicare • Only pays for long-term care if you require skilled services or rehabilitative care: • In a nursing home for a maximum of 100 days, however, the average Medicare covered stay is much shorter (22 days). • At home if you are also receiving skilled home health or other skilled in-home services. Generally, long-term care services are provided for up to 21 dyas. • Does not pay for non-skilled assistance with Activities of Daily Living (ADL), which make up the majority of long-term care services • You will have to pay for long-term care services that are not covered by a public or private insurance program

  7. Who Pays for Long Term Care - Medicaid • Does pay for the largest share of long-term care services, but to qualify, your income & assets must be below a certain level and you must meet minimum state eligibility requirements • Such requirements are based on the amount of assistance you need with ADL • Other federal programs such as the Older Americans Act and the Department of Veterans Affairs pay for long-term care services, but only for specific populations and in certain circumstances

  8. Who Pays for Long Term Care – Health Insurance • Most employer-sponsored or private health insurance, including health insurance plans, cover only the same kinds of limited services as Medicare • If they do cover long-term care, it is typically only for skilled, short-term, medically necessary care

  9. Sample Long Term Care Quote

  10. Sample Long Term Care Quote continued

  11. Questions? Questions?

  12. Thank you for your time… Contact Information Scott Snowden Snowden & Associates, Inc. (502) 339-7980 scott@snowdenbenefits.com