Long-Term Care: Don’t Underestimate the Need for Coverage
The first Baby Boomers reached age 65 in 2011. While many Boomers are looking forward to retirement, they may not be prepared for some of the less welcome aspects of aging. For example, according to recent research, smaller family sizes and rising divorce rates may limit the availability of family care providers for aging Boomers, and increase their need for paid long-term care services. Since long-term care is the leading source of catastrophic out-of-pocket medical costs, which have the potential to impoverish, it is important for most people to consider long-term care insurance.
What is long-term care?
Long-term care is provided to people who are physically or mentally unable to care for themselves. It may include medical or non-medical services, such as assistance with daily activities, nursing care, and skilled nursing services. Home health care, adult day care, respite care, assisted living, and nursing home care may all fall into the long-term care category.
Who needs it?
While studies estimate that more than two-thirds of people over age 65 will need long-term care at some point, approximately 40 percent of the people who currently receive long-term care services are between the ages of 18 and 64. In fact, the proportion of people under age 65 who bought long-term care insurance policies tripled between 1990 and 2006, increasing from one-quarter to two-thirds of all individual buyers. Coverage is critical for people of all ages, and it can be more economical to purchase coverage at a younger age.
What about health insurance, Medicare, and Medicaid?
Health insurance policies and government programs, like Medicare and Medicaid, don’t provide the coverage that long-term care policies can provide. Health insurance policies typically do not cover the cost of nursing homes or assisted-living facilities, nor do they pay for adaptive equipment, special transportation needs, or home modifications.
When a patient is discharged after three days of hospitalization, Medicare will pay for care in a skilled nursing facility. However, Medicare does not pay for custodial or intermediate care, which includes assistance with dressing, eating, and moving around. The majority of care provided in a nursing home is custodial care so, while Medicare provides limited coverage, out-of-pocket expenses may be sizeable. Once long-term care patients exhaust all of their assets, they may qualify for coverage under Medicaid. However, individuals and their families have little choice about the care received.
Learn more about long-term care options
A long-term care policy can help ensure your financial well-being by preserving your assets and enabling you, or your family, to choose the level and type of long-term care received in the future.
If we can be of any assistance, please call Archer Investment Management at (919)758-8911. We will be happy to work with you.
About Matt Archer:
With a solid background in the financial industry, Matt Archer founded Archer Investment Management in January of 2006. Matt finds working as an Independent Advisor Representative rewarding because it allows him to help clients make their financial goals and dreams a reality, thus helping them attain financial freedom in their lives.
A graduate of Brockport State University, Matt has a Bachelor of Science degree in both finance and economics; he also has several industry licenses including his FINRA General Securities Representative (Series 7), NASAA-Investment Advisors State Law Exam (Series 66), Uniform Securities Agent State Law Exam (Series 63), General Securities Principal (Series 24) as well as his Life and Health Insurance licenses. Matt strives to exceed what is expected of an Independent Investment Advisor. In 2006, he became a member of the Quest for Excellence program, which is one of the leading consulting organizations for wealth advisors. He attends semi-annual workshops and monthly educational conference calls, which enable him to enhance his infrastructure and elevate his level of service that he provides to his clients.
In his leisure time, Matt enjoys spending time with his wife Timmie and daughter Madison. Matt is a sports fanatic and enjoys golfing, cycling, and attending a variety of sporting events. He is also committed to giving back to his community. Matt has chaired multiple golf tournaments that benefit Safe Child of Wake County, Triangle Community Foundation, and The First Tee of Wake County. He is also a regular supporter of the Lance Armstrong Foundation and the National MS Society. Along with participating in the annual North Carolina MS 150 ride each fall, Matt is also involved in charity rides supporting the Jimmy V Foundation and the Kidney Foundation.
The above material was prepared by Peak Advisor Alliance.
Securities services offered through Capital Guardian, LLC, member FINRA/SIPC.Investment Advisory services offered through Capital Guardian Wealth Management, LLC, an SEC Registered Investment Advisor.