Another option for LONG TERM CARE (LTC)

December 12, 2013

I just  saw another  study indicating that 85% of Americans have not arranged for LTC. That means that  either A) they choose to Self Insure which is silly or B) they choose to rely on the Government plan which is worse, its ridiculous, or C) they are to late to buy and are now priced out or are actually Medically uninsurable.  those who believe in A) are usually misguided and in many cases do not have  enough Risk Protected assets to actually be able to  self insure. Those  who fit into category B) fail to understand that most of them do not  have a solid government backed  LTC program other than Medicaid with all of its limitiations. Do you  really  want to  be dependent on finding  a Medicaid approved bed in a facility you  would  want to  spend the last years of your life in? In the  case of C) there are options that are  guaranteed issue asset based alternatives for LTC insurance.

It  actually strikes me as funny that most of the people I know both clients and friends who actually  can  afford to self insure are smart enough to know that that isn’t an intelligent use of their assets when they can get the protection using only a fraction of the assets if they buy protection. Some use traditional LTC insurance  and some use asset based strategies. I can  help with both.

Pleas get in  touch if you want to investigate your LTC choices and alternatives!


Impact of Filial law on the cost of Long Term Care

June 28, 2013

Filial law is an old English principle that basically states that Children can be held responsible for something that  affects their parents as well as the more commonly understood principle that parents can  be held  responsible for  the  actions of at least their minor children. There are  resources available  or  contact you attorney to learn more about the impact of Filial law on your cost for LTC. About half of the  states are Filial law states. Ohio for  example is a filial law state. Some states using filial law are filing suit against the children  to  recoup the  cost of state subsidies for the LTC  costs paid for by the state.

Everyone has a  LTC plan some are just much better and much smarter than others. If  you  don’t set up a plan you  get  the  state plan which can involve spending all of your assets until you  potentially your spouse are destitute, and may also involve leaving your children on the hook for  your cost of care.  If you don’t like these alternatives you MUST  set up an action plan for yourself.

It is usually much smarter to plan for it yourself.  The key is of course not to wait to long to begin your plan! That includes considering using your assets to pay for LTC, purchasing LTC insurance or maximizing your assets to reduce your cost of LTC

Long Term Care and Suze Orman

November 12, 2012

There is a new blog post on  Long Term  care at the  following  blog  site. It  talks about a recent recommendation  that people buy Long Term Care Insurance (LTC). That post also talks about several biases shown on the Suze Orman show

Suze Orman says to buy Long Term Care Insurance

May 18, 2011

In her show on Saturday May 14, 2011  Suze Orman  made a series of very positive comments about Long Term Care (LTC) Insurance.  Basically she said you need to buy it if you can afford it! She shared her personal experience with LTC needs from her own family. Her mother doesn’t have it and her care is costing almost $20 K per month and several relatives do have it and their out of pocket costs of LTC are totally covered by the plan. Everyone should know that LTC costs are extremely expensive! Almost no one needs a care plan to cover the costs that Suze is paying for her mothers care.

A licensed professional can help you determine if you need LTC insurance, how much you should buy and what it will cost. Talk to your LTC expert.
I can help

A recent article on

December 22, 2010

A recent article appeared on that I felt everyone needs to  be aware of. Its an important topic and unfortunately only about 10% of the population is covered.

the link is

The financial risk for surviving spouse and children is devastating!  Many states have the legal right to go after children to recoup the cost of a parents long term care expenses under Medicaid.  Almost half the states offer you a way to protect against this recapture provision in state law. Even if you don’t believe in Ltc insurance perhaps you should take care of it for your kids sake.

The Cost of Alzheimenrs

September 10, 2009

*Did you know  It costs between $500,000 and $1 million to care for an Alzheimer’s patient in a facility.
* Did you know about the high cost at almost $90,000 per year and rising and scarcity of facilities
Long-term care is a major issue that is going to face all of us eventually. Between our clients and our family members, there is little doubt that we will eventually be touched deeply by the tragedy, the sorrow and the cost of this end-of-life occurrence.
We will watch it affect  lives physically, emotionally and financially. Many of us make our living advising older clients about how to manage their assets and their financial affairs. Most of these clients will one day deal with long-term care and the cost associated with it. When it comes to long-term care, they will need to  be looking to some form of Advisor for the answers to many questions.  What you do to prepare for , will affect the quality of life immensely for any family touched by this horrible disease.
If you have not purchased long-term care insurance for yourself and your spouse, do it NOW!! It does not get cheaper as time goes on.  Many clients have found out that they waited too long to apply and that they are now Medically uninsurable!!  If you have assets to protect get coverage while you are still healthy and insurable.  What can we do to help you?

I recently heard a question from a boomer regarding Long Term Care

May 7, 2009

A Baby Boomer recently asked me the following question about Long Term Care. “If I have one Million Dollars could I fund my own Long Term Care needs?”

I think that my answer started him thinking and also almost certainly surprised him. He clearly thought he could easily self fund his LTC needs. The answer to his question is only MAYBE he could self fund his Long Term Care (LTC) risk and needs. The answer “Maybe” scared him and the follow up question I asked is what really started him thinking. My first question to him was why in the world would you want to self fund that massive risk?

One of my Ohio clients is currently spending over $8,000 per month or almost $100,000 per year on his wife’s care. Now we are not talking a top facility in downtown Columbus we are talking a suburban facility with a very good reputation that is 50-70 miles away. Now imagine what that facility will cost in ten years time with medical cost inflation over that period. It could cost as much as $200,000 per year.
Why risk a full lifetimes saving on 5 years of care? This particular client is still relatively young and is still in good health so they are still insurable. He could cover a lifetime of LTC expenses for much less than the cost of one years care expense. Remember the average length of care need is between 2-3 years. That is just the average. I have a former neighbor who spent 14 years in a nursing home before she died.
This lady always hoped to be able to go home again so she also kept her home and home maintenance expenses during that 14 year period. There is absolutely no way that woman could have self funded her Long Term Care need and her home expenses with $1 or even $2 Million in assets. Lets also consider whether people who can truly afford to self fund their Long term Care Risk are self funding or are they buying LTC Insurance. The vast majority of those who can afford to self fund LTC are also smart enough to not want to take that MASSIVE risk.

We have several new clients that are currently dealing with Medicaid spend down in order to cover the cost of a spouses cares in a nursing home facility. We are running in a salvage mode trying to save something because they forgot or failed to plan. One of these clients even has a trust set up but the trust was not set up early enough to provide any benefit in their current situation.

Another question is assuming that you could have assets left at the time of your death ” Isn’t there someone in your family or even a charity you would like to leave a legacy for rather than funding Medicaid or a nursing home?”

Whatever your answers are we can help.

What About Long Term Care Protection

October 31, 2008

Now  may be a great time to get Long Term Care  (LTC) coverage.  Most investors are now aware that their assets are subject to the whims of the market and are exposed to Massive Downside Market Risk. Not everyone is exposed but most people are.  My retirement clients are protected from downside market risk.

Why is this a good time to think about LTC coverage?  With the 30-50% drop in many investors net assets they now need to be concerned about the major risk of trying to  self fund their  LTC Needs. Investors who a year ago felt they  could easily afford the  risk and expense now find themselves in the uncomfortable position of having a legitimate concern about their ability to Pay. Remember it is essential to fund both their comfortable  retirement and the potential for a multi-million dollar  Long Term Care expense. Historically  when faced with a decision to  buy  LTC insurance those who are wealthy enough to truly be able to self  fund are generally smart enough to realize why the hell should they  self  fund  when  they  can  transfer the risk of the  LTC expense to an insurance carrier for a fraction of the  cost of funding a self pay program. They are the  early adopters of LTC  coverage. Niow for those in the middle that don’t fully understand the risk and are not aware of the unbelievable cost of  LTC need to rethink their ability or even the logic of  self  funding.

Two facts are  certain. Approximately half of the population will have a LTC need during their lifetime!  The cost of care for a couple in their 50’s or 60’s can  easily reach $1 Million or more!  Why not  pass the risk on to an insurance  carrier?  In fact a smart couple in their 40-50’s can  have a policy that is fully paid for by the time they  will retire that could provide an inflation adjustedlifetime of care protection package! In fact if you  start early it can  even be done at  reasonable cost.  Thats pretty smart planning!

Many ways of dealing with the need for Long Term Care (LTC)

October 11, 2008

There are many options for dealing with  Long Term  Care (LTC) Costs. It can be as simple as paying the expense out of your assets. Notice I said simple but certainly not inexpensive. This is called self funding. It can involve a spend down of virtually all assets until you qualify for  Medicaid. This is a good alternative only for those who have little if any assets to begin with. If you are a veteran or the spouse or widow of a veteran you may be eliggible for assistance. You can  buy Traditional  nursing Home coverage which only reimburses for care provided in a nursing home. This has become a somewhat less popular option as better products have become available. You can buy modern Long Term Care product that will cover Nursing home costs, Assisted Living Care or home care provided bty professionals. You can buy  a cash payment plan that is based on diagnosis and does not depend on  where that  care is provided or needed.  These last two options are becoming the most popular options. Then  there are also what I call asset multiplier plans that increase the value of the assets you have set aside to pay for LTC. In many cases you can triple the value of the money you contribute to these plans. This in effect gives you up to a 66% discount on your cost of  care. That is Real Economic Value.

Understanding Long Term Care

October 6, 2008

Over one half of the US population will require Long Term Care (LTC). Why is it that only a little more than ten percent have TC protection? A lot of people think that LTC Protection is very expensive. The facts are it isn’t that expensive especially if you buy it while you are young and  healthy. A forty year old who is smart enough to invest the cost of a nice dinner out per month can provide years worth of LTC protection. One of the largest benefits of starting early is that the premiums are much much lower for a young healthy insured than it will be in 10 to 15 years. The second most important benefit in starting young is that in 10 years or at age 65 it is possible to have a LTC plan that is fully paid up with inflation protectionto help insure that you will have adequate coverage when you need it.

Myths behind the Reasons people don’t buy LTC coverage.

1  I can’t afford it                                                       False         Most people can afford it if they buy it while they are young and healthy.

2  Medicare will pay                                                    False        Medicare does not provide  LTC

3  Medicaid will pay                                                    True         But only after you spend almost all of your assets and your spouses assets.

4  I will self insure                                                      False        Most people can not reasonably self insure the risk of a long LTC need without depleting all of their assets.  The independently wealthy who can actually afford to self insure are smart enough to go ahead and buy LTC protection because they are smart enough to realize self insuring against this risk is not good money management.

5  I don’t want to buy because I want to stay home-  False        Many modern policies can actually help you to be able to stay at home