Dan Nicholas, CLU, CLTC Long Term Care Planner
This of course is the bottom line everyone wants to know right off. My answer usually is "a cup of coffee a day." And it's usually pretty close.
But this, of course, is way too simple and why we should get together for a brief meeting and explore. Some of my clients are spending $67 per month; some $1,150 per month for a plan, depending. And some are simply amending their Advance Directive for Health Care at a cost of a 44 cent stamp! (See me and I'll show you how.)
Let's exchange email and talk on the phone first to discover if it might make sense to try and meet. We will zero in on the cost specific to you and your personalized plan. But health comes first. I won't waist your time or mine if you can't qualify. Let's talk about this.
Long Term Care plans that involve insurance are not for everybody. Many of us have parents who are beyond the healthy years and can't get insurance at any price.
I have clients age 65+ with reasonable health who have a basic, 4 hr a day, 2 yr in-home care LTCi plan for around $75-$90 month premium. I've met with others clearly too poor to afford such a plan. This is why we have state paid Medi-Cal Skilled Nursing Facility/SNF care. (Which excludes meaningful in-home care and assisted living altogether.)
If you have savings and home equity, adult children, a spouse you love and reasonable health--LTCi maybe be for you. We have clients with $6M net worth and up who own LTC insurance. I can't tell you where the middle class begins or ends or if you are wealthy enough to self insure. Go to this link and see what the govt. thinks about self funding. Suggestion: enter $80k yr. X 3 yrs. for $240k; and needing care at age 81; with a side fund for one spouse growing at 5%.
Two Proverbial Roads:
When I meet with clients it usually comes down to concern about two possible roads up ahead:
Click here for the Harry Crosby "11 Reasons" to own a Long Term Care plan. If you have adult children, here's the 11th, a quote from Harry's book: Long Term Care...the complete guide.
Yes, "...the strain in the relationship with their siblings. One older brother explained (to me) how he had taken care of his mom and had decided that she should be in a nursing home. Two younger brothers and a sister insisted that she was not going into a home. In desperation one of the younger brothers agreed to take mom. Within three weeks mom was in a facility because the younger brothers and sister could not handle the care. But, the damage was done; none of the younger brothers or sister speaks to the older brother."
Did you know:
20% of LTCi plans drafted today are smaller, shared plans between couples. If one partner dies first, the spouse "inherits" his/her partner's unused LTCi plan benefits. Nice. If one only needs 1 yr of their 2 yr. plan, the other partner "inherits" what is unused. Like unused cell phone minutes, they roll over to the spouse.
50% of all new LTCi claims today on newer policies are for Informal Care. Does your plan allow for Informal Care, where family members, neighbors, grand kids can be paid, say, $11hr. rather than $21hr? Such plans are more flexible, last longer, are less expensive.
75% of LTCi claims today on the newer, comprehensive LTCi policies are for in-home care, the most sought after benefit not even available on LTCi policies 15 years ago.
Yes, Long Term Care insurance is not for everybody...but if you have family and your health and a few dollars left at the end of the month, maybe you should check it out.
Most of my clients who have plans pay about the cost of a Starbucks visit every day. Maybe that would work for you?
Contact us to get some ideas. Get started on your plan.