Long Term Care (LTC)
 

We are living longer today. Many Americans live with chronic illnesses or debilitating conditions that might have been quickly fatal not too many years ago, such as diabetes and heart disease. More Americans need more care for more years then ever before. Who is going to pay for that care?

Meet the Wilsons...

Jim and Julie Wilsons were married 30 years. Jim enjoyed a highly successful career as a stock broker, also investing wisely in his 401K account. At the time of his retirement he was worth $1.5 million, not including the value of his home. Jim and Julie, in their late 50's looked like they had a world on a string.

In a split second their world changed.  Not long after Jim retired his car was totaled by a drunk driver. Jim survived the accident but it left him paralyzed from the waist down. Bedridden and unable to walk, Jim needs round-the-clock care, regular physical therapy, and a wide variety of equipment and supplies—the bill comes to over $150, 000 a year.

It has been five years since Jim's accident. He is only 61. Doctors say that despite the accident, he has the same life expectancy as any other healthy man of his age. In another 7 years— assuming Julie remains healthy, the Wilsons will have wiped out all their assets, excluding the value of their home.

What went wrong?

The Wilsons did planning in several areas but neglected to take out a long term care insurance policy. A Long term care insurance policy would have paid for the home health care cost Jim incurred after his accident thereby protecting all the savings he and his wife had managed to accumulate up to his accident.   The insurance policy would have protected them from becoming impoverished. 

They may have considered themselves too young to contemplate long term care insurance, but the cost of waiting can be much higher than the cost of purchasing the policy at a younger age.   Once Jim had his accident- he could no longer qualify for a policy.  Ever!

The decision to purchase a LTC policy today will make your annual premium significantly more affordable then if you delay your decision to buy. The best time to purchase LTCI is when you don't need it, because by the time you need it, it will be too late.

I help families plan for the future, so when a family member needs LTC, the family will have several options to choose from. Many people are not aware of the high costs associated with nursing home care, home care services and other long term health care needs.

Cost
What is the cost of nursing home today? The average cost is $35,000 to $100,000. The costs are expected to triple over the next 10 years. If you had to write a check today for $100,000, where would you take that money from?

How will I pay for long-term care services?
You have a variety of options for paying long-term care
services.
You can pay for these services out of your pocket like the Wilsons or you can purchase an individual long term care insurance policy.

There are those who suggest giving away their money to their children to qualify for Medicaid (welfare) but being on Medicaid is not the way to achieve the life of dignity. Do not divest your assets. Do take the steps necessary to protect your self.

There is no "one size fits all" when it comes to long term care insurance.

All long term care policies are not created equal. You will want to discuss with me the various options that make the most sense for you.

For further details call Bonnie Baglien. To contact us click here.