Long-Term Care

What is Long-Term Care?

Long-Term Care is the greatest emotional, psychological, and financial risk facing families of retiring Americans. 

Long-Term Care (also known as "Extended Care" or "LTC") is the type of assistance people need to perform the normal activities of daily living like eating, bathing, dressing, and geting out of bed.   The need for LTC assistance arises as a natural part of aging but can also result from an injury or illness, such as multiple sclerosis, stroke, rheumatoid arthritis, or due to cognitive impairment, such as Alzheimer's disease. ^[1]

Aging brings unique challenges to our ability to move around independently, drive, read, pay bills, and even clean ourselves -- and, for most of us, these challenges can be more likely and even more expensive than an auto or home accident.  Ironically, even though few of us would dare go without insurance to help pay for the cost of an automobile accident, very few Americans consider insurance as a way to leverage their assets to pay for potentially much more expensive and disruptive LTC!

Most people assume Long-Term Care Insurance (LTCI) only pays for nursing home care -- which few of us want to experience -- but that belief couldn't be farther from the truth!   While LTCI can pay for nursing home expenses, its real purpose is to help people maintain their independence, stay at home, and preserve their life savings.

Candidly, it may be your sickness that destroys your family members' health -- and LTC planing is really about protecting your family from the devastating demands of your care.  (Wouldn't you rather have your loved ones manage your care rather than provide it "hands-on" themselves?)  Too often it's an adult daughter who puts her life on hold because she can't ignore her parents' need.

In short, experienced financial advisors can help you design a plan that keeps your family (and finances) together rather than destroying either due to your need for care.

Our Philosophy Regarding Long-Term Care

• Each of us may live a long life.
• A long life could impose staggering costs on our loved ones.
• Nothing will pay for this care other than a retirement portfolio or long-term care insurance.
• The earlier we plan and act, the easier the cost.

Unless you’ve cared for a special needs child or aged relative for an extended period of time, the staggering toll exacted on caregivers is rarely understood -- and too often it's wives and daughters whose lives, families, and health are “put on hold” indefinitely.

Most people believe that the worst things only happen to someone else.  However, reasonable people never insure against risk; they insure against consequences, once they understand how severe the impact could be on their loved ones.

A True Story of Two Grandfathers

Two grandfathers were very different yet both loved their families and expressed that love in many ways.  Both were honest, hard-working men who sacrificed for their children and grandchildren and were loved in return.

One man owned and managed the only retail store in a small town.  He lived conservatively, gave plentifully and accumulated significant savings before retirement.  His dream of serving as a missionary with his wife was prevented, however, when Alzheimer’s Disease struck shortly after retirement, quickly robbing him of his dreams and slowly of his memories.  Fortunately, their financial resources permitted his wife to hire a live-in helper who managed her husband’s daily care and gave her the assistance and respite she needed.   More than anything, Grandma wanted Grandpa home with her where family could easily visit – and her income and assets permitted that.  This grandpa died peacefully in his home with loved ones surrounding him.

The other man was a skilled laborer who briefly owned a farm but mostly did “handy-man” work until retirement.  When Alzheimer’s afflicted him, there were no savings or other financial resources to intervene.  Fortunately, as a WWII Army veteran, he was entitled to benefits that allowed him access to nursing home care.  Unfortunately, government funding limits didn't permit adequate janitorial staffing, a fact quickly recognized by the alert noses of young grandchildren who found it difficult to visit Grandpa.  He soon forgot his wife and children and became accustomed to the company of strangers and the innocent familiarity of a “girlfriend.”   Family members weren’t present when he died.

Life isn’t about money but money does permit choices.  Which future do you think both men wanted? More importantly, which would you prefer?

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Consider these sobering facts regarding "median" cost of care in Nevada:

Long-Term Care Average Stays ^[2] :

• Nursing Home = 2.6 years 
• Home Health Care = 4.5 years 
• Assisted Living = 18 months

Long-Term Care Current Costs:

• Nursing Home - $99,468/year ($272/day) Private Room rate
• Home Health Care - $50, 340/year ($138 / day)
• Assisted Living - $40,800/year ($112/day)
• Adult Day Care - $19,500 ($54/day)
• Costs are projected to triple in 20 years! ^[3]

More Long-Term Care Resources

• John Hancock's Long-Term Care quiz
• "The Next Step" a Kiplinger pdf workbook
• Long-Term Care articles
• For Employers: LTC = "Productivity Insurance"