Dan Nicholas, CLU, CLTC Long Term Care Planner
By now you know that Medicare and health insurance at work doesn't cover extended chronic care. So what are the costs? What are the risks? If the costs are small and the risks small, to self insure looks good. Or maybe just "wing it"?
Costs: As a planner, I like help clients key on 70% of Skilled Nursing Home (SNF) costs in their county and state. In the Bay Area in 2010, that's about $160 a day for two, three or four years...a great start. Will $160 a day cover all LTC costs? Of course not. But an LTCi plan as modest as $80 a day for two years can be an absolute life saver for many families. Yes, a lifetime LTCi plan providing $220 a day for Skilled Care with 5% compound inflation would be nice...and a plan for four years would be nice, too. But how many of us can afford such a plan? And, remember, only 13% of nursing home claims go over 3 yrs. My clients make up middle America and I believe "half of something is better than all of nothing"--a very good place to start! As a planner, I favor LTCi strategies that are reimbursement, yes, but also have some cash in them. Let's meet and I'll tell you how and why. Long Term Care insurance (LTCi) Individual Plans (most often not available at work) come in four flavors and we can explore which one might work best for you.:
b) Cash Hybrid
c) All Cash
d) One Pay Asset Transfer
And, of course, if we are talking about your parents who are beyond health, age and financial ability, planning takes a different path. But we can still plan. Email me. I can help.
Cost of Care in your town?
Is $160 daily benefit enough? Of course not. But why look at $220 a day in LTCi coverage at a nursing home level if you
a) never want to go there and,
b) such a plan could be way expensive.
Did you know:
Click here for a quote on a comprehensive plan that will pre pay for
a) in home care
b) assisted living care
c) adult day care
d) skilled nursing home care...should an LTC event happen to you.
Memory Walk 2010
"Experts predict that by 2030 Medicare spending on those with Alzheimer's will cost nearly $400 billion."
We are perhaps in denial about dementia and aging. I'm 62. At 65 if I have my wife and five friends to dinner around the table at my house, one of us has dementia. Go to www.alz.org and study this. It's a wake up bell ringer.
The emotional cost to families and caregivers of those with Alzheimer's can be hard to even imagine. One in seven over age 65 have dementia in the US today.