Three words that have gotten extremely popular recently are Long Term Care. Why? COVID-19 has caused unrepairable illnesses, and people continue to keep living longer and need more help as they age. Also, nursing homes have become LESS popular due to families wanting to keep their loved ones at home, instead of exposing them to others in a time of fragile health. Only 1% of the population lives in a nursing home, yet over 40% of COVID deaths were nursing home patients. There are numerous reasons and opinions on why that is, but the overwhelming emotion is that you need to care for your loved ones at home. What does this really mean for you and your finances?
Long Term Care insurance could potentially be one of the most important decisions you will ever make. Less than 18% of people use their auto insurance. Less than 5% of people use their homeowners insurance. If you are single, there is a 70% chance you will use your Long Term Care insurance; and, if you are married, there is a 92% chance at least one of you will need LTC. Wow! The only type of insurance that is 100% guaranteed to be used is a permanent life insurance policy because none of us are getting out of this world alive! Long Term Care insurance has evolved extensively over the past several years. Many people think the premiums will skyrocket once you start paying; and, if you ever need any of that money back that you have put in, you’re out of luck. Does that sound like a good deal to anyone? NO! Welcome to “Asset-Based Long Term Care.” What is the first word? Asset. Everybody wants assets. Nobody wants liabilities. A properly designed Asset-Based Long Term Care policy could hands down be one of the GREATEST assets that you own. It is the one asset that can protect all of your other assets in the event you one day need someone to take care of you. The issue for most people isn’t whether they will need care or not. The issue is what impact that care will have on your spouse, children, and family.
Facts about Long Term Care:
• 65.7 million caregivers make up 29% of the U.S. adult population providing care to someone who is ill, disabled, or aged (The National Alliance for Caregiving and AARP).
• Approximately 34.2 million Americans have provided unpaid care to an adult age 50 or older in the past 12 months, and more than 15 million Americans provide unpaid care for people with Alzheimer’s disease and other dementias (The National Alliance for Caregiving and AARP).
• 22% of informal caregivers to the elderly are depressed which is twice the rate of the population as a whole. 55% of caregivers who live with dementia patients suffer clinical depression (End-of-Life Care and Effects of Bereavement on Family Caregivers of Persons with Dementia, Richard Schulz).
• Elderly informal caregivers run a 63% higher risk of dying from stress-related illnesses (Involvement in Caregiving and Adjustment to Death of a Spouse: Findings From the Caregiver Health Effects Study).
Do you think you could possibly become frail and need care one day? Do you want your family to have to take care of you, or would you rather a paid professional come in while your family oversees your care and maintains their quality of life? No retirement plan is complete without a plan for Long Term Care. If you would like more information, please call our office at 843-808-9850 and ask for a free consultation to determine if Long Term Care coverage may be appropriate for you.