| Most people think the need for long term care | | | | - Assistance in part or whole by a relative (children). |
| assistance is for people in their 70's and 80's. The fact | | | | - Purchase an annuity with its income used to fund the |
| is that 40% of long term care needs are under age 65. | | | | LTCi policy. |
| The younger the age the lower the premium. Plus at | | | | - A plan offered through an employer. Keep in mind |
| younger ages, people are generally in better health in | | | | that in a number of situations premiums in part or |
| order to qualify. These plans not only help pay for | | | | whole may be deductible. Some states also offer a |
| custodial care expenses but also preserve assets that | | | | tax credit. |
| may now or later be needed to pay these expenses, | | | | - If both spouses are considering individual policies look |
| but were really planned for retirement income. And | | | | at a plan with a Shared Care option or one policy that |
| especially now when people's assets have decreased | | | | pays the benefit on more than one life -benefit paid on |
| significantly. | | | | who ever has the claim first. Many carriers also offer |
| Before considering Long Term Care insurance, | | | | spousal discounts. |
| consider the premium cost (also as a percentage of | | | | In the early days of Long Term Care plans, only |
| ones income- if it makes sense to pursue) and then | | | | nursing homes were covered. Today, numerous |
| consider the cost of care. One study of various costs | | | | options are available and if feasible, a person would |
| are shown in the resouce box below. | | | | rather stay at home to receive care as long as |
| No, Medicare isn't a plan for long term care expenses. | | | | possible. Today's plans also cover or offer this option. |
| Medicaid can provide assistance once the beneficiary | | | | What triggers benefits in the first place before a Long |
| spends-down their assets as set by each state. With | | | | Term Care insurance policy will pay out? Normally |
| funding going down and expenses going up, don't count | | | | when you cannot do certain activities for yourself or |
| on the state or the federal government to pick up the | | | | require substantial assistance. Qualification is usually |
| tab. | | | | considered when there is a problem with two out of |
| And if giving (or gifting) away assets in order to qualify | | | | six ADL's (Activities of Daily Living), e.g., eating, bathing, |
| for Medicaid is a consideration, be very aware of the | | | | dressing, toileting, transferring, and maintaining |
| strict rules that are in the Deficit Reduction Act of | | | | continence. See policy's definitions to see specific |
| 2005. There could be a rude awakening in the delay of | | | | wording on what qualifies benefits to begin. Normally, |
| Medicaid benefits if not followed. Contact legal counsel | | | | cognitive (memory) impairments can also trigger |
| such as an elder care attorney for assistance in this | | | | benefits. |
| area. | | | | Also keep in mind the cost of care giving. Possible lost |
| A few states (and more are joining in) are a part of | | | | wages and well as personal health issues are factors |
| the Federal Governments supported Long Term Care | | | | when taking care of a person. Many times the |
| Insurance Partnership Program. For a person | | | | caregiver will be the spouse or adult children. You may |
| purchasing a LTCi policy in those states, the benefit | | | | have already experienced this or know someone who |
| from the plan can be used first and then still qualify for | | | | has. Here again, Long Term Care insurance can play a |
| Medicaid. | | | | big part in care giving expenses and many times pays |
| Premiums will vary by policy benefits: A 90 day waiting | | | | for respite care for the caregiver. |
| period before benefits start will be less costly than a | | | | There are a number of resources on this subject |
| 30 day waiting period. A 3 year plan will be less than a | | | | through your state (including their web sight) as well as |
| 5 year or life time benefit. Using an inflation rider such | | | | numerous other web sources. Just type in Long Term |
| as 5%, compound or simple interest (where the initial | | | | Care Insurance on a search engine. |
| daily or monthly benefit increases the original benefit | | | | If you or someone you know is considering purchasing |
| each year), is more expensive than no inflation rider. | | | | a Long Term Care insurance policy now or in the near |
| Some plans also offer an inflation rider based on the | | | | future, look at all your options, the various policies and |
| annual CPI (Consumer Price Index) rate which can | | | | benefits available, definition of what triggers the |
| result in lower premiums compared to a fixed | | | | income, the company's history in marketing these plans |
| guaranteed inflation rate option. | | | | (and their financial strength), and the source who you |
| How to pay for LTC insurance premiums? A number | | | | may be buying a policy from. Always request and |
| of options to consider. | | | | expect professional advice. |
| - Out of current earned income. | | | | Cal DesVoigne |
| - Withdrawals from investments (principle, interest or | | | | LifeStyle Financial Resources, |
| both). | | | | LLClifestylefinancialresources.blogspot. |