Long-Term Care Planning

Which picture above is the correct color for the Yield Sign?

Perception:

Most of us have the wrong perception of what Long-Term care is all about. If I was to ask you what color is the yield sign what would you say? Yellow? Orange? Neither, the answer is Red and White! Likewise, many have told me they rather just pull the plug, so-to-speak, than think about Long-Term Care. However, that level of care would be most likely considered the “Skilled Nursing” or “Hospice” aspect of Long-Term Care. What about the type care that our family members gave us at home? Yes, that is also covered under Long-Term Care insurance.

Home Care and Assisted Living: This is the type of care family members would act as our care givers, the reality is most of us don’t have as many children like past generations. Also, almost in every culture now both the sons and daughters nowadays have to work. Thus, forcing one to deplete or spend down their assets.

Cost:

The cost of care also continues to rise faster than our investments. Just 10 years back, the average cost for a nursing home was $50,000-$60,000/year. Assisted living cost was around $24,000-$36,000/year.

Today, the average cost of a Home Health Aide in the Bay area is around $25/hour. Assisted living care average is around $48,000-$60,000 per year. Nursing home care average is $90,000-$120,000 per year. How far would you be able to stretch out your legacy before it runs out?

Self-Insure vs Insurance:

Do you have health insurance, homeowner’s insurance, and car insurance?

The answer is most likely, yes. Why, then, is it that most likely you do not have Long-Term/Short-Term care planned out, or gave it much thought? The truth of the matter is none of us really want to think about needing help in the future.

Some think Medicare or their health insurance will cover that. Long-Term Care is also considered part of health care, however, your regular health insurance, including Medicare, does not cover Long-Term Care.

The reality is 70% of all Americans use Long-Term Care at some point in their life. The percentage of you using your homeowners and car insurance much less!

Tax Free Benefits: Some have enough money to self-insure. However, why self-insure when you could receive benefits Tax Free? Self-insuring usually causes having to sell assets or stocks, thus causing one to be in a higher tax bracket. As an example, if you are receiving $100,000 a year in Long-Term care benefits each year, the entire amount could be completely TAX FREE! How important would this be to you and your family’s legacy?

How far would you be able to stretch out

your legacy before it runs out?

5 HUGE CHANGES You Need To Know | 2024 Medicare Part D

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