Advising Clients since 1980
Long-Term Care Insurance
This type of insurance is protection against the costs associated with services needed when an individual can no longer care for themselves. The need for these services may result from illness, injury, gradual frailty, loss of functional capacity or a cognitive impairment such as Alzheimer’s disease. Long-term care services range from assistance with certain day-to-day activities to more specialized nursing care or therapy services.
Where Long-Term Care Services are Provided
In one’s own home
In the community at a facility while the person you’re living with is working or away
In a nursing facility with 24-hour services for people who require a high level of care and attention
Statistics Regarding Long-Term Care
72% of people 65 and over may require some form of home health care (according to a study by the Lewin Group)
40% of people receiving long-term care services in this country are working age adults under age 65 (according to a study by the General Accounting Office)
Nursing home expenses average $56,000 per year with costs typically higher in metropolitan areas (according to a study by the National Health Statistics Group)
In-Home care expenses can sometimes exceed the cost of a nursing home depending upon the care required (according to a study by the American Council of Life Insurers)
Long-Term care expenses are expected to quadruple in the next 30 years (according to a study by the American Council of Life Insurers)
How to Pay for Long-Term Care
Pay Yourself - long-term care services could quickly use up your accumulated retirement income, savings and other assets, leaving little or nothing for your heirs
Depend on Medicare - Medicare only covers medically necessary expenses when skilled care is provided under strict eligibility guidelines. Most long-term care is generally custodial in nature and not covered by Medicare
Depend on Medicaid or Medi-Cal - Medicaid or Medi-Cal is designed to help the poorest in our communities. To qualify for assistance from Medicaid or Medi-Cal, you will be required to meet strict guidelines on assets owned and gross income. These requirements could deplete your assets, threaten your heir’s living or educational needs and/or your retirement dollars
Health Insurance - private health insurance is designed to pay for medical expenses for skilled levels of care that help you recover from an illness or injury. Long-term care services, such as assistance with dressing eating and bathing, generally do not qualify under the group or individual health insurance you may carry
Depend on Family - relying upon the resources of family members may place an undue financial and emotional burden upon those you care most about. Additionally, they may not live close enough to provide the care required or may lack the resources, expertise, time and willingness to provide such care
How to Pay for Long-Term Care
Many individuals are choosing a long-term-care insurance policy to help pay the costs associated with long-term care. It is a more cost-effective way to provide for your long-term care services while also providing the most options and flexibility for you and your family.
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Charles M. Bloom, Registered Principal offers securities and advisory services through Centaurus Financial, Inc. - Member FINRA and SIPC - 775 Avenida Pequena, CA, 93111 (mailing address: 3905 State Street Suite 7173, Santa Barbara, CA, 93105) - CA Life Insurance License No. 0A52786 - Centaurus Financial, Inc. and Shoreline Wealth & Investment Management are not affiliated companies.
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