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
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
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
December 22, 2010
A recent article appeared on MSNBC.com 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 http://www.msnbc.msn.com/id/40767145/ns/health-aging
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.
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?
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.
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!
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.
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