We are getting more out of life than ever before! With all of the changes in technology, diets, exercise programs, increased longevity, and delayed childbearing we are realizing opportunities that our grandparents could never have imagined. Yet, these socio and economic changes have contributed to a problem that didn’t exist before. Aging in place safely and affordably, while managing chronic illness is not only a concern for families, but is also of great concern within our communities as well.  In the past, when an elderly parent was no longer able to take care of themself, a child or friend would step in and help.  Who can we look to for the personal assistance that we may require?  Our own care, and the care of our loved ones, is a multifaceted experience that every family will face and should take into consideration.

    Nowadays people have the option to buy Long Term Care Insurance. Families who have LTCI are less likely to take personal time from work to be caregivers. Adult children can oversee care as opposed to provide the care.  Selecting a long term care product provides resources for extended care at home. The value of planning ensures individuals will have the financial means to maintain their independence while continuing to be a vital part in their family and community. It is no wonder that given these benefits, LTCI product solutions are considered part of the fastest growing insurance market.

    Most people mistakenly think that Medicare or health insurance covers costs associated with long term care expenses.  In fact, neither Medicare nor private health insurance will pay for custodial care.  Eighty percent of all long term care is provided by family members and friends and would be considered custodial care. (CBO study June 2013 “Rising Demands for Long Term & Supportive Services”.)

    Medi-Cal is California’s implementation of the Federal Medicaid health care program.  One must qualify for Medi-Cal based on their financial situation. Medi-Cal is limited in the type of facility and the variety of home care supportive services that will be paid.  The vast majority of long term care that Medi-Cal will pay for is in a skilled nursing facility that accepts Medi-Cal payments, and has an available bed.

    Long Term Care Insurance Products can provide benefits to families for the following care choices:

    • Assisted living services that are provided in a special residential setting other than your own home. These services may include meals, health monitoring, and help with daily activities.
    • Specialized Memory Care Facilities
    • Care provided in your home with daily activities that include bathing, dressing, eating, housekeeping, cleaning, and companionship.
    • Community programs, such as adult day care.
    • Visiting nurses for advanced acute services
    • Skilled Nursing Facilities

    The right time to buy a policy is not when the illness sets in, or when the member is in their 70’s or 80’s. We recommend looking into these types of policies from your mid 40’s to 60’s. Two very important reasons to select coverage at an early age would be to medically qualify for coverage, and to select benefits with premiums at an affordable rate.

    Reducing the burden on other family members, along with protecting your assets are reasons to consider looking into Long-term care insurance now.  It is estimated that it costs about $65,000/year for care in a nursing home. For a private room setting, the cost is about $75,000+/year.  Home care can range from $19 to $25 per hour. These are national averages, with California being about 30-40% more expensive.  Factors such as location, inflation, and type of care should be factored in.

    Here are several things to consider before buying a policy:

    • Coverage. You can choose long-term care policies that pay only for nursing home and residential care in an assisted living facility.  Most policies are sold with a variety of care options that include; home, nursing home, assisted living, and adult day care. Some plans will even pay for a family member or friend to care for you in your home.
    • Daily or Monthly Benefit. The daily or monthly benefit is the amount of money the insurance company will pay for each day you receive care. If the cost of care is more than your daily or monthly benefit, you will need to pay the balance out of your own pocket.
    • Benefit Period. Your benefit period determines the length of time you will receive benefits from your policy. You can choose a benefit period that spans from two to ten years
    • Elimination or Waiting Period. During this period, you must pay all of your long-term care expenses out of your own pocket. This period could last anywhere from 0 to 100 days. The longer the waiting period is, the lower your premiums will be.
    • Inflation Protection. With health care costs rising to new heights every year, buying a policy without inflation protection is probably buying a policy that won’t cover much of your expenses. There are two main kinds of inflation protection: the right to add coverage at a later date; and automatic coverage increases.

    B. Wood Insurance Agency is contracted with all major carriers and our staff is well versed in this type of insurance product. When it comes to long term care planning, we choose to partner with an expert in this field. Linda Jahnke with Capitas® Long Term Care has spent the last 25 years educating families and business owners on the necessary steps needed to protect their retirement savings and businesses from the costs of long-term care. She has been a valuable resource to thousands of families by implementing long-term care insurance coverage and assisting families with their long term care claims and care management decisions. Linda not only helps families select the finest long term care products, but she also provides advocacy services for those who need help to access their policy benefits. If one of her clients’ needs care management services, Linda personally assists in establishing safe connections for family members to get quality in home care and professional oversight.  She is a board member for The Glenner Memory Centers of San Diego and a valuable resource for her aging clients and their families.