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Long-Term Care
Long-Term Care planning is vital during your retirement, not only will it help to protect your assets that you worked hard to accumulate, but it is also making sure that you will receive the kind of care that you deserve at your home or in a care facility.
Do not leave your family with more worry than is needed, let us help you secure a life insurance policy that will ease the stress of an untimely incident. Life insurance is a great financial tool for leaving a TAX-FREE legacy for your love ones or as a Charitable gift.
Call (805) 208-9563
To learn more and understand your options.
Speak with an EMIS professional today.
A TRUE STORY – He didn’t think he would ever need Long-Term Care!
Years ago, a couple in the San Fernando Valley responded to an advertisement we mailed out for people who interested in learning about Long Term Care. A very wealthy couple responded, and they were very eager to meet with us as soon as possible. She had been to the market and on her way back to her car, another car was backing out of the parking space and hit her basket and she lost her balance and hit her head. The accident had left her in a coma from which she eventually recovered but for some reason had left her with Parkinson’s diseases! She could no longer button a blouse, tie her shoes or hold a cup steady without spilling it or perform any of her activities of daily living. The had been paying approximately $15,000.00 a month for 24-hour care 7 days a week for the past several years and this situation was not going away. They wanted to buy a Long-Term Care Insurance Policy to absorb some or all the cost. When we arrived, we were under the impression that the husband wanted to buy a policy for himself. Well, we were wrong he wanted it for his wife! The problem is that you cannot buy Fire Insurance once you home is on fire! Even though they had a very large nest egg, they you are not able to sustain the cost for many more years and would deplete all their assets eventually. Back then, around 2003, a policy would have probably cost around $ 3,000.00 a year and he gladly would have paid $1,500.00 per month for coverage. The important thing to take away from this story is that: You buy Long Term Care with your health and you pay for it with money! One last thing, No, he did not buy an policy for himself he didn’t think he would ever need it!
Most Important Things You Should Know About Long-Term Care Insurance
Here are important facts to know before purchasing your Long-Term Care Insurance. At Equity Management and Insurance Services we’re here to guide you every step of the way and find the best fit for your needs.
- You do not have to be in perfect health to qualify for a policy.
- You will be involve in the design of the policy some people want more elaborate policies than others.
- One of the most important things about LTC is having choices of where you get the care, home assisted living or in a nursing home.
- If you don’t have a policy and need care, the state will take care of you after you have depleted all your assets.
- If you own a home, the state will put a lien on your home and when you pass away, the will recuperate the money they spent on you care.
- 3 out of four seniors over the age of 65 will need 2 to 3 years of LTC.
- There are fewer companies in the state of California offering LTC.
LONG-TERM CARE INSURANCE EXPAINED
FREQUENTLY ASKED QUESTIONS
What is Long-Term Care?
I refer to Long-Term Care as “mommy care”, it’s the daily activities that our mothers helped us with when we were growing up and if you live long enough, you will need someone to assist you again. The care giver helps you with your ADLs/activities of daily living such as: 1. transferring, getting in and out of bed or a chair. 2. Ambulation, being able to walk around safely. 3. Dressing and undressing. 4. Bathing and showering and all other hygienic needs. 5. Going to the bathroom or continence management! 6. Cooking and eating and at the proper time.
Why should I buy a Long-Term Care policy?
If you’re like me, I like to have choices and be in control of where and when I will receive my care, I don’t want anyone else making choices for me. With a policy, I can choose to have the care at home, assisted living, or a skilled nursing facility as well as in state out of state or stay with a loved one. Keeping in mind that if you pay for care out of pocket, Long-Term Care can deplete a retirement nest egg quickly and with the Covid-19 situation, the last place I want to be is in a nursing home if I have anything to say about it!
What other services does Long-Term Care provide?
The policies will provide the following: transportation to medical appointments, to adult day care centers, light house cleaning and cooking of meals and assistance with medications!
Will I need Long-Term Care?
The statistics show that 3 out of 4 seniors over that age of 65 will need 2 to 3 years of Long-Term Care for an average of 2 to 3 years. Both my parents needed care and they did not have a policy because like most of us, they did not believe they would need it. When I was 50 years old, I decided I didn’t want to be an emotional or financial burden to anyone, so I bought a policy. It should also be noted that out of 10 couples, 7 of the couples will have a partner that needs Long-Term Care!
Are all Long-Term Care policies designed the same?
No, they are not and when we run spread sheets for our clients, we come back with a starting point of the 2 to 3 years of care and because these policies have moving parts that you can adjust, we want your input and help in designing a policy that you are comfortable with.
What is the cost of Long-Term Care?
Depending on the design, your age and medical history, that can vary? Some clients want a minimum amount of coverage because they can augment or offset the cost with their savings. We will help you design a policy that you want.
How do I qualify for care once I have a policy?
In order for the insurance company to accept your claim you must have a doctor attest that you need care and that you cannot perform 2 of the ADLs/Activities of Daily Living or that you have a cognitive impairment! We will do the claim forms with you and your family as well as interact with the doctor if need be. We are your representatives and there is zero cost for us assisting you. It’s really the best way to go because we are well versed at that.
What are the Activities of Daily Living that will qualify me for Long-Term Care?
If you cannot perform 2 of the following ADLs, your policy will provide you with the assistance you need and they are: your ADLs/activities of daily living such as: 1. Transferring, getting in and out of bed or a chair. 2. Ambulation, being able to walk around safely. 3. Dressing and undressing. 4. Bathing and showering and all other hygienic needs. 5. Going to the bathroom or continence management! 6. Cooking and eating
What if I never need care and never use my policy?
Depending on the design of your policy there can be a return of policy and or, your benefits could be moved over to your spouse or domestic partner. If this is a major concern, I would look into a hybrid policy that pays out a tax-free death benefit so that the money stays in the estate and is usually at least twice as much as the premium.
Is there a tax deduction for buy a policy?
There can be, for example I since I am self-employed, I can write off all or part of the expenses, but we suggest you consult your CPA. If you own a company, you should be able to write it all off.
Can I get my money back if I never use my policy?
In some cases and some policies offer a return of premium but this depends on the carrier and the design of the policy!
Do I have to need care 24 hours a day to activate my policy?
No you do not, the company that you choose to receive your custodial care from/the caregivers, will have a minimum amount of hours and this may vary from company to company, the choices our up to you as long as the company is licensed and meets the states qualifications.
Call (805) 208-9563
To learn more and understand your options. Call now to speak with an EMIS professional .
