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Our Long Term Care Planning Process

Step # 1 - Education

During our first meeting (in office or webinar) we go through our client focused Long Term Care presentation with you.  The presentation is interactive so that we both learn from each other.  We will go through trends, misconceptions, answer questions you have while we ask you questions about what your concerns and goals are.

Step #2 - Review

At this point you have decided to take the next step.  We will use your age and general health information to find policies specific to you.  IMPORTANT: We are independent financial advisors so we have no loyalty to any specific insurance company.  We will shop across the entire industry to find the carrier that has a high rating with a policy that best fits your specific situation.  

Step #3 - Application

Each company has their own application process whether it is hand written or an e-application.  Depending on the insurance company and your situation the underwriting process can be as simple as a phone interview or physical done by a medical professional.  During this time we will be coordinating efforts and making things as seamless as possible. 

Step # 4 - Ongoing Support

One reason for our success as a firm has come from high levels of customer service.  If you have a question or problem you can always give us a call or an email and we will get right back to you.  Since Long Term Care does not frequently changes reviews will be every couple years or more frequently if you prefer.  

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Understanding Long Term Care

What is Long Term Care?

For years we have worked with residents in the South Bay plan for and understand the costs associated with long term care services.  The costs for long term care services continue to outpace inflation which makes it a bigger piece of a family's estate and financial plan.  We know it can be a difficult subject which is why we make the process as simple and stress-free as possible for all parties involved.  

Our goal is to educate and present the options available to afford these services so late in life.  There are a lot of companies that offer up different solutions to this problem and there is no 'one-size fit's all' solution so it's important to understand what you want to accomplish and then find the right solution.

Long-term care consists of a range of services and support for your personal care needs. Most long-term care is help with basic personal tasks of everyday life that consist of 6 activities of daily living;

  1. Bathing
  2. Dressing
  3. Using the toilet
  4. Transferring
  5. Incontinence
  6. Eating 

There is a *69% chance that you will need some kind of long term care during your lifetime. The typical range of services include;

  • Home Health Care
  • Adult Day Health Care
  • Assisted Living Facility or Residential Care Facility
  • Nursing Homes
  • Hospice

Things to Know

Many people believe that our healthcare system will help them pay for these services, but that is only true for a small amount of circumstances, for a limited amount of time, and will only apply to approved facilities and care.  For instance, Medicaid/MediCal will only pay for LTC costs if the individual has under $2,000 in total assets

 As the **74 million baby boomer generation begins to create a larger demand for LTC it is only a matter of time before the demand for quality LTC facilities outweighs the supply.  It is never too late to start planning for LTC costs, but the sooner you do the cheaper it will be for you and your loved ones.

Ways to Pay for LTC

The largest group of people who buy long term care insurance are the ones who have had personal experience. They have seen their parents or grandparents either spend everything on care or seen the benefit of having LTC.  The impact it had on them and their family, and they don't want that to happen to their spouse and children. 

  • Self-Insure
    • This can be a great option, but many times there are ways to better leverage your assets in order to save money for the estate.
  • Life Insurance
    • Many policies today have optional riders that allow for accelerated death benefits.  This will allow an individual to spend down the death benefit to pay for LTC services.
  • Annuities
    • Similar to life insurance, certain annuities will allow for accelerated payments to LTC. 
  • Existing life insurance and annuities
    • The IRS tax code 1035 will allow you to exchange your cash value life insurance policy or annuity for a new one as long as it is beneficial for the owner. 
  • Reverse-mortgage
    • It can be an option, but costly for an estate.

All of these options a viable but require careful consideration and evaluation.  They should be discussed with a financial professional before making any decisions.  

Current and Future Costs for Different LTC Services

Home Health Care

Homemaker Services make it possible for people to live in their own homes by helping them complete everyday household chores and tasks that they wouldn't be able to do on their own.  The typically services a homemaker aide provides are cleaning the house, cooking meals or running errands.  They may offer care to people who need more extensive personal care than family or friends are able to or have the time or resources to provide. 

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Adult Day Care

Adult Day Health Care can offer a break to family members that are providing a lot of the care.  This type of care provides services at a community-based center for adults who need assistance or supervision during the day but who do not need round the clock care.  The centers may provide health services, therapeutic services and much needed social activities. 

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Assisted Living Facility

Assisted Living Facilities or Residential Care Facilities are living arrangements that provide personal care and certain health services for people who may need assistance with the activities of daily living (ADL's).  The level of care provided is not as extensive as that which may be provided in a nursing home.  Assisted living is not an alternative to a nursing home, but an intermediate level of long term care.  

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Nursing Home

Nursing home care is for people who may need a higher level of supervisions and care than in an assisted living facility or residential care facility.  They offer residents personal care, room and board, supervisions, medication, therapies and rehabilitation as well as skilled nursing care 24 hours a day. 

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Information for this article was found from the following sources.