Do You Know Long-Term Care? (Part 2/3)

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Long-term care is a range of services and supports you may need to meet your personal care needs. Most long-term care is not medical care, but rather assistance with the basic personal tasks of everyday life, sometimes called Activities of Daily Living (ADLs). Long-term care insurance helps cover the costs of home and nursing care when you are not able to perform ADLs on your own.

As we continue celebrating LTC Awareness month, we want to see how much you know about long-term care. The goal of LTC Awareness month is to create heightened awareness of the need for long-term care and the importance of planning options available to Americans and their families.

Now we want to ask: are the following three statements.[1] true or false?

1. Medicare is not the primary funding sources for most seniors’ long-term care costs.

  Medicare appending accounted for 20% of total long-term care expenditures in 2007. While it primarily covers acute care, it pays for limited stays in post-acute skilled nursing care facilities and home health care.[2]

2. Most long-term care is provided in a nursing home.

  Most LTC is not provided in nursing homes. 80% of older adults who receive LTC do so in their own homes or community settings.[3]

3. Medicaid covers long-term care services received at home.

  Medicaid primarily covers long-term care services in nursing homes. In states where Medicaid does cover home-based long-term care services, it is done so on a limited basis.[4]

 

To learn more information about LTC and your LTC needs, please contact Keith Eig.

 

 

 

[1] Statements given by John Hancock’s Long-Term Care Quiz.
[2] H. Komisar and L. Thompson, National Spending for Long-Term Care (Washington, DC: Georgetown University Long-Term Care Financing Project, February 2007, Fact Sheet).
[3] US Department of Health and Human Services, National Clearinghouse for Long-Term Care Information, www.longtermcare.gov, September 2008.
[4] The Official US Government Sit for People with Medicare, www.medicare.gov; Medicaid and Long-term Care, “What is Long-term Care?” August 2006.

Fun Fact: Life Expectancy vs. Health Expectancy

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We want to share this fun fact with you as we continue to celebrate Long-Term Care Awareness Month.

It should come as no surprise that life expectancies have increased.  In 1900, the life expectancy was 50 years. In 2014, life expectancy is now 80 years.  That’s a 60% increase!

It should also come as no surprise that health expectancy has risen. Health expectancy is the number of years that you are expected to require health assistance and will accumulate medical expenses.

From 1900 to 2014, health expectancy has increased from 2 years to 15 years.  That is a 750% increase!

An important part of any financial/retirement plan is being prepared to handle a long-term illness.  At GWE, we can show you options to address this concern.

Do You Know Long-Term Care? (Part 1/3)

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Categories: Industry Insights

Long-term care is a range of services and supports you may need to meet your personal care needs. Most long-term care is not medical care, but rather assistance with the basic personal tasks of everyday life, sometimes called Activities of Daily Living (ADLs). Long-term care insurance helps cover the costs of home and nursing care when you are not able to perform ADLs on your own.

As we continue celebrating LTC Awareness month, we want to see how much you know about long-term care. The goal of LTC Awareness month is to create heightened awareness of the need for long-term care and the importance of planning options available to Americans and their families.

Now we want to ask: are the following three statements[1] true or false?

1. Disability insurance and long-term care insurance cover the same things.

  Disability insurance provides you with income if you become sick or injured and are unable to work. It is not designed to cover LTC expenses.[2]

2. The average lifetime chance of needing long-term care for an individual 65 years or older is more than 40%.

  It is estimated that approximately 70% of people over age 65 will require long-term care services at some point in their lives.[3]

3. People have to spend all or almost all of their assets to get Medicaid benefits.

  While the maximum level of assets you’re allowed to keep caries from state to state, people are required to spend down assets to a significaltly low level before they can qualify for Medicaid benefits.[4] In some states, policyholders may receive additional asset protection if they have a Partnership-qualified policy.

To learn more information about LTC and your LTC needs, please contact Keith Eig.

 

 

[1] Statements given by John Hancock’s Long-Term Care Quiz.
[2] H. Komisar and L. Thompson, National Spending for Long-Term Care (Washington, DC: Georgetown University Long-Term Care Financing Project, February 2007, Fact Sheet).
[3] US Department of Health and Human Services, National Clearinghouse for Long-Term Care Information, www.longtermcare.gov, September 2008.
[4] The Official US Government Sit for People with Medicare, www.medicare.gov; Medicaid and Long-term Care, “What is Long-term Care?” August 2006.

The Best LTC Insurance Plan: Memory Boosting Foods

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We want to kick off long-term care awareness month with some food for thought!

There are three types of long-term care insurance policies:

  • stand-alone
  • hybrid
  • life insurance with LTC riders

We want to tell you a fourth policy…possibly the best policy there is: memory-boosting foods.

One of the leading causes for long-term care insurance claims is a decline of cognitive ability. Keep your mind strong and enhance brain function with these foods that have been scientifically proven to stop and possibly reverse age-related memory loss.

 


Blueberries

Blueberries are loaded with anthocyanins, which are powerful phytochemicals that give them their blue hue. They are a natural chemical compound that has been proven to give people a substantial delay in mental decline.

 


Kale

Consuming high amounts of vegetables lead to less age-related memory decline and kale is one of the most impressive. Brush with olive oil for an added brain boost.

 

Salmon

This fatty fish is rich in Omega-3 fatty acids, a structural component of the brain that enables neurons to conduct signals to the brain.

 

 


Nuts and Seeds

All varieties of nuts and seeds help promote steady blood flow and ease inflammation, which is critical for keeping your memory sharp. Bonus: they are also a heart-healthy food.

 

 


Beets

This secret weapon has been proven to increase blood flow to the area of the brain associated with dementia. Be brave and drink beet juice, or just add a few slices to a salad.

 

 

To discuss any of these four policies, contact Keith Eig, CLU, CLTC.

National Save for Retirement Week

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It’s National Save for Retirement week! Along with life insurance, disability, and long-term care plans, we are also in the business of retirement plans. I want to take this moment and highlight some resources we have available for you regarding retirement plans.

For more information on what we do to help you with your retirement goals, go here.

We also have some great calculators on our website. They include:

We also have economic newsletters and just came out with 2014’s Q3 newsletter.

Lastly, I just read an article on USA Today that discusses how middle-class adults have $20K saved for retirement. They list the findings of a new study that was conducted by Harris Poll for Wells Fargo.

Take this moment to think about whether you’re doing enough to prepare for your retirement.

September is Life Insurance Awareness Month

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Did you know that September is Life Insurance Awareness Month?  This 2013 survey by Nationwide Financial showed that 98% of Americans of who are married, partnered, or have dependents have less than adequate life insurance.  The study found that while many people had some life insurance, the coverage was generally insufficient to replace their income over the long term.

We encourage you to take this opportunity to examine whether you and your clients have enough life insurance coverage to ensure financial security for loved ones.

Please contact any of us here at Greenberg, Wexler & Eig, LLC to assist with your insurance “check-up.”

GWE’s Crabfest

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Two things we love to do are treat our staff and spend time outside of the office. This past Friday, everyone at Greenberg, Wexler & Eig went to Scott’s house to relax and do what Marylanders do best in the summertime–eat crabs!

M Sabbatical Trip

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On July 15th, Scott and Cindy Greenberg and Keith and Andra Eig joined 150 other members of the M Financial community aboard the Silver Seas Whisper to sail the Baltic Sea during the 14th Biannual M Financial Sabbatical. Ports of call included Berlin, Gdansk, St. Petersburg and Stockholm. In addition to M Financial staff and member firm principals, top executives from all of M Financial’s carrier partners were on board to “talk shop” and provide resources to benefit our client’s insurance portfolios.

Estate Planning with Long-Term Care for Wealthy Families

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The long-term care market has significantly changed over the past several years. As the market evolved, many high net worth individuals have either purchased or expressed an interest in a new long-term care policy form called “Hybrid Long-Term Care” coverage.

Advisors frequently ask us if it is prudent for their high new worth clients to acquire long-term care insurance when their net worth is sufficient to withstand the additional expenses attributed to long term care. Every family’s goals, objectives and circumstances are different. Yet many of the issues remain the same when considering the pros and cons of a Hybrid Long-Term Care policy.

Hybrid Long-Term Care is a combination of cash value life insurance and long-term care coverage. The program is funded with a single lump sum deposit with the insurance company. The lump sum deposit guarantees the benefits in the contract and no further premiums will ever be required (this is not the case with traditional long term care policies where insurance companies have the right to raise the premiums). In the event that the insured qualifies for long term care benefits, the policy pays the monthly benefit amount over the time period purchased. However, unlike traditional long term care policy, if the insured dies, a death benefit is payable to the insured’s beneficiary. Also, many Hybrid contracts have a return of premium provision or rider. This rider will return the single premium to the insured at any time before a long-term care claim if the insured determines that the coverage is no longer needed. In a low interest rate environment where cash earns very little, this makes a Hybrid Long-Term care contract a good cash alternative for the high net worth that maintain substantial cash reserves.

Long-Term Care benefits paid from a qualified long-term care policy are income tax free. If self-insuring and resources are needed to fund the expenses of long term care, selling assets may result in capital gains or ordinary income taxes. Also, markets fluctuate and timing issues should be part of the consideration. Lastly, assets with substantial built in gains my best be held until death because the step up in basis could be very valuable for the family.

Lastly, long-term care events are an emotion time for families. Whether it is a healthy spouse or children that helping sort through finances and coordinate care, tension can run high. Some companies, in addition to providing the funds at the time of claim, also provide “Concierge Care Coordination” services to provide much needed support at the time it is needed most.

In conclusion, there are several compelling reasons why long term care insurance, if structured properly, can play a role in the planning for high net worth individuals.

Contact Matthew Friedson to talk more about Hybrid Long-Term Care.