Long-Term Care Insurance Equals Family Care

By Diane Stoddart CLTC, LTCP

Without LTC planning, many family members sacrifice their futures and savings for their own retirement years.

Long-term care (LTC) planning has as much to do with the person needing care as it has to do with their caregivers’ wellbeing. LTC is about protecting those we love from the physical, emotional and financial consequences they’ll face when a parent or loved one needs help. About one (1) in five (5) of all adults (22 percent) will have a care need that extends beyond five (5) years.

November is long-term care awareness month. It’s important to understand the costs (financial, social, physical, psychological) to caregivers because it’s never too early to plan for long term care. Associated health costs continue to rise, and the expense of caring for patients for an undetermined number of days/weeks/months or years, can create significant financial difficulties.

In the 21st Century, people are living longer, and LTC can help make our senior years as comfortable and stress-free as possible. The incidence of memory disorders and cognitive decline is on the rise, and diagnoses of dementia create one of the most common needs for extensive long-term care.

Have you or a loved one said, “Please promise to never to put me in a nursing home…but I don’t want to be a burden…” Many try to keep those promises to their own detriment. Without LTC planning, many family members sacrifice their futures and savings for their own retirement years.

Case Study: I’ve witnessed families deplete their assets and sell their parents’ homes to pay for care. What happens when the money runs out? Without a home, the parents need to either move to a facility or move in with their kids. With that nursing home promise lingering in the background, discord among siblings results, and they frequently argue about costs of care or “a place for Mom.”

On the other hand, we meet seniors who planned and bought LTC insurance many years ago. Planning ahead provides time to discuss what kind of care they would like when care is needed. Some have already toured assisted living facilities/communities (ALFs) and decided where they would want to live, when they can no longer live independently.

Caregivers or adult children of senior parents, who purchased LTC insurance, are often able to couple the insurance proceeds + the patient’s income. With the combined funds, many can afford a nice ALF or 6-10 hours of in-home care per day.

Full-time or part-time (in-home) care enables caregivers and adult children to take care of their own families, knowing their parent is receiving appropriate care. Often, families select “step up” care that allows them to transition from the home until residential care in an ALF is needed.

Recognizing that there is no “one size fits all” plan (some clients prefer the idea of an ALF), it’s good that there is a wide assortment of LTC plan options today. Some use a lower premium that is paid over your lifetime, while others use a 1, 5, 10, 15 or 20 years paid-up funding strategy. Optimally, you will pay for the plan before reaching retirement.

New laws allow us to reposition cash value from life insurance and annuities to create LTC plans that pay tax-free benefits for care or pay your beneficiaries, if no care is needed. In fact, there are options for a full return of premium if a client changes their mind and cancels.

When we plan in our 40s and 50s, we often guarantee that both the LTC benefit, and the death benefit will pay significantly more than the premium paid.

With options, we need not feel like we are abandoning our loved ones to the nursing home. Nor do we need to feel like we will be abandoned. Instead, we can proactively plan, communicate, and carry out our loved ones wishes that were designed many years before care was needed.

We need to become more aware of what planning strategies and policy options are available today to help us prepare for tomorrow. Before you know it, we will be the ones living longer than we thought we would. It’s important that we protect our families from physical, financial and emotional devastation.

With options, we need not feel like we are abandoning our loved ones to the nursing home. Nor do we need to feel like we will be abandoned. Instead, we can proactively plan, communicate, and carry out our loved ones wishes that were designed many years before care was needed.

California Broker is pleased to have a collaborative relationship with Buddy Insurance, a leading long-term care insurance education, marketing and technology company. CEO Marc Glickman and his specialists will collaborate with health and life insurance professionals to help design LTCi options. Learn more about LTCi and refer clients — or learn how to write your own LTCi policies using Marc’s system.

CONNECT to Buddy Insurance LTCi PORTAL HERE:

Group:

www.buddyins.com/program/calbroker/group

Individual:

www.buddyins.com/program/calbroker/

Diane Stoddart, CLTC, LTCP, is a BuddyIns LTCi specialist who has been helping families plan for the financial exposure of an extended life since 1992.

Diane and her husband, Paul, bought their long term care policies at age 35. At 40, she was diagnosed with Multiple Sclerosis. By the grace of God, she has no symptoms or troubles with the disease. She is, however, uninsurable and is so grateful that she was led to plan early.

Diane designs customized plans through multiple top-rated insurance carriers. Diane works in all 50 states to help her clients plan today to be able to live at home later, when they need help living.

You can reach Diane at diane@buddyins.com