1 ABCs of Long Term Care Planning2009 Carol Knowles (CA license No. OF20048, AZ ) Reproduction or usage in any manner of all or any portion of this PowerPoint presentation is not permissible by law without the expressed written authorization of the author.
2 Reasons for Getting Long Term Care InsuranceAcknowledging the risk Protect your hard-earned savings Health insurance, Medicare, Medi-Cal/Medicaid Self-insuring Facilitate options for care Help your family to help you Honor your independence and dignity
3 The Family Have a heart-to-heart talk with those dear to you.Be considerate of the stresses facing your family members who love and want to help you, but who have obligations of their own.
4 What Constitutes a Long Term Care Situation?The definition is universal, applying anywhere in the United States and in some cases, abroad. You are in a long-term care need when 2 of 6 Activities of Daily Living (ADLs) are compromised beyond 90 days: Bathing Eating Continence Toileting Dressing Transferring or with the onset of Dementia or Alzheimer’s Once you go on claim, you stop paying your premiums and the company starts paying to help you, according to the benefits and guidelines listed in your policy. If you move, the policy goes with you.
5 Duration of Long Term Care NeedsThe national average for LTC needs outside the home is about 3 years for men, 4 years for women. There are, however, many situations in which the ADLs can be compromised for a much longer period of time, including Alzheimer’s Parkinson’s Muscular Sclerosis (MS) Depression
6 Who… An estimated 43% of those currently in a long term care situation are between the ages of 18 and 64 years.1 __________________________________ 1U.S. Government Accountability Office
7 Where… Area nursing home facilities currently are not sufficient in number to accommodate existing needs, let alone those of aging Baby Boomers. More and more, by necessity or by choice, people are having their long term care needs met in the comfort of their own home.
8 The Cost The financial burden of meeting long term care needs can jeopardize everything for which you have worked so hard throughout your life. Meeting the needs of one person can leave the surviving partner/spouse impoverished. Many young adults today are facing an uncertain future … possibly without a pension, little or no Medicare or Social Security. Over 1/3 of those getting LTC insurance now are under the age of 55.
9 What are the Costs? The average cost for facility care in the greater Los Angeles area now exceeds $80,300 per year (about $220 each day). The cost of care in 1980 was $15,500! Wow!
10 Why Support Services Are NeededBurden of Caregiving 63% of elderly caregivers are likely to die earlier than non-caregivers. Many suffer in silence from social isolation and endure any number of deleterious health effects.1 The impact on other family members can be significant -- the sense of responsibility and desire to help loved ones are often in conflict with reality. ______________________________________ 1 Kalb, C. ”How TLC Makes You Sick”, Newsweek, May 31, 2004.
11 Components of LTC Insurance Policies Daily Benefit ($50-$400) Duration of Coverage Discounts Available to domestic partners Inflation Protection (none, 5% simple or 5% compound)
12 Components of LTC Insurance Policies (cont’d.)Patient Care Coordinator Home Modifications Hospice Services Respite Care Facility Bed Reservation Elimination Period / Deductible
13 Deductible / Elimination PeriodDeductible does not usually apply in this scenario Hospital Potential one–time, lifetime application Rehab. facility
14 Other Major Medical Hurdles“The Big C” and Other Major Medical Hurdles A history of cancer, other major illnesses or diabetes does not necessarily dictate your chances today to secure long term care or life insurance or an alternative product.
15 Selecting a Company Eligibility based on health Current rating HistoryFeatures unique to each carrier Protecting your rights as a consumer Application process How much insurance is enough? Premiums Future rate stability
16 The Time to Buy is Now… Preparing for life’s transitions is a gift to yourself and to those you hold dear. It sends a powerful message of love, respect and compassion to your spouse and family members. It helps assure that your wishes will be honored, your dignity and independence kept intact. Waiting to insure is a calculated risk. The consequences of missing the opportunity to prepare for potential needs and falling ill without a plan are devastating. Isn’t the quality of your future worth a little time now to get the job done?
17 In Summary… Pro’s Con’s So, are you ready to move forward? Lock into today’s rates Rates adjusted periodically for new, incoming policyholders; buying when you’re older is a greater long-term investment Assure you health-qualify Run risk of becoming uninsurable Protect your assets Without insurance you risk losing all your savings If one person doesn’t health Your surviving partner could be left destitute, the stress qualify or finances are limited, of managing your care alone can impact his/her insuring the other helps both parties physical and mental health You dictate how and where Government help with long-term care needs, your potential future needs other than MediCal/Medicaid for facility care for will be met the indigent, may be forthcoming but is expected to be very limited ($50 daily benefit) and come at a cost. You have up to 30 days after Waiting/debating/procrastinating/denial accomplishes your application is approved nothing but potential heartache for you and those to modify or even cancel it you love So, are you ready to move forward?
18 “Don’t try to live forever – you will not be successful“Don’t try to live forever – you will not be successful.” George Bernard Shaw
19 “Old age at least gives me an excuse for not being very good at things that I was not very good at when I was young.” Thomas Sowell
20 “The man who is a pessimist before forty-eight knows too much; if he is an optimist after it, he knows too little.” Mark Twain
21 “Beautiful young people are accidents of nature,“Beautiful young people are accidents of nature, but beautiful old people are works of art.” Eleanor Roosevelt
22 Appendix Estate planning Special needs Internet resources
23 Taking Care of BusinessIf you haven’t already done so, you owe it to yourself to do your estate planning, including Trust and/or will Power of Attorney, advocate Advance directives (must be updated if older than 10 years) Funeral wishes Last rites, burial wishes List of personal property, intended recipient(s)
24 Taking Care of Business (cont’d.)Make certain your finances are in order. Put all your important paperwork in one safe location and let 1-2 people you trust know of that site. Give a copy of the paperwork to someone outside your home for safekeeping. Look at facilities now. Understand your legal rights, options. Notify your family, Power of Attorney, primary care physician and any hospital where you have medical records that you have long-term care insurance. Keep your policies with your important documents.
25 Addressing Special NeedsIn order to understand you and maximize the quality of your long-term care, you should be forthright with family, healthcare providers and your caregivers about any potential special needs: Traumatic life experiences Religious doctrine Cultural traditions Mental illness Addictions Non-English speaking Hearing-, vision- and/or speech-impaired
26 Internet Resources CA Dept. of Insurance -- www.insurance.ca.govIncludes a booklet “Taking Care of Tomorrow”, generic information on long term care planning New Lifestyles -- A resource for exploring facilities in your area Senior Concerns -- Non-profit organization in Thousand Oaks that addresses needs of the elderly Carol Knowles --