1. SEPTEMBER 2011
A Long-Term Care Primer
Although your retirement savings — and your
family — can be affected profoundly by market
volatility or another recession, the need for long-
term care can be even more catastrophic. No
matter what triggers the need for care — a
specific illness, an accident or age-related
frailty — the financial and emotional costs
Brian D LaHue can be significant for long-term care
Financial Representative recipients and their caregivers.
(812) 738-2198 WHAT IS LONG-TERM CARE?
As Americans grow older, many suffer from
blahue@lincolninvestment.com
chronic illnesses, physical disabilities or cognitive impairments. Such conditions create a need
for assistance with daily activities such as bathing, dressing, preparing meals and other tasks —
that assistance is called long-term care.
WHO NEEDS LONG-TERM CARE?
Average Daily Cost
Many Americans are expected to need long-term care at some point in their lives:1
of Long-Term Care
$215
• 40 percent of all people receiving long-term care are ages 18 to 64
Nursing home (semi-private)
• 40 percent of older people will need care in a nursing home
Assisted living facility
$194
Home healthcare • 70 percent of people over age 65 are expected to need long-term care services
$190
$180
WHO PAYS FOR LONG-TERM CARE?
One-third of adults believe that private health insurance, Medicare or Medicaid will cover long-
$168
$147
term care costs. This is false. Long-term care costs are primarily paid out-of-pocket by the
$160
individuals who receive the care or their families.1
$144
For long-term care recipients:2 For family caregivers:2
• $14,000 spent out-of-pocket, on average • $8,000 spent out-of-pocket, on average
(excluding facility costs) (excluding facility costs)
$108
$106
• 88 percent of recipients had household • 63 percent of caregivers had household
$95
income fall by one-third, on average income fall by one-fourth, on average
• 63 percent of recipients spent about • 61 percent of caregivers spent about
$75
two-thirds of their savings two-thirds of their savings
LONG-TERM CARE INSURANCE CAN PROTECT YOU AND YOUR FAMILY
Long-term care insurance can help you meet the expense of a long-term care event. Experts
suggest that the best time to purchase a long-term care policy is in your 50s, when you are in
good health.3 Not all policies provide the same benefits, so it is important to discuss which
policy may best suit your needs.
2004 2006 2008 2010 1
Kiplinger.com, 10 Things You Should Know About Long-Term Care, 2011
Source: AARP Data from the National Long-Term
, 2
Genworth Financial, Beyond Dollars: The True Impact of Long Term Caring, September 30, 2010
Care Survey, September 2010
3
Reuters Money, The Best Time to Buy Long-Term Care Insurance, November 18, 2010

2. PERSPECTIVE | SEPTEMBER 2011 2
The Ups and Downs of Managing Your Parents’ Money
Middle age isn’t what it used to be. Today’s 50- • Understand the scope of the responsibility.
somethings are vital, energetic and adventurous. Depending on your parents’ capabilities, you
They can expect to live longer and healthier lives may need to pay bills, monitor credit cards,
than their parents, who are expected to live to track checking accounts, sort mail and cull
age 78, on average. As a result, 50-somethings e-mail to avoid fraud. In some cases, you may
may need to keep a closer eye on their aging need to help your parents develop a spending
parents than previous generations did. If disease plan and provide a weekly allowance. Make
or mental infirmity occurs, they may need to step sure you communicate thoroughly with your
in and help manage their parents’ money. If you siblings, so they understand what you are
POWER OF ATTORNEY find yourself in this situation, here are a few tips doing and why.
If a parent is in the early that may help:
• Collect key information. Over time, you will
stages of Alzheimer’s • Preserve your parents’ dignity. If you see piece together the fragments of your parents’
disease, it can be a good signs that your parents’ ability to care for finances. Gather key documents and make a
idea to establish powers themselves is declining — uncharacteristic list of critical information, including doctors,
of attorney for financial disorganization, unpaid bills,
medical histories, accountants, financial
expired food in the fridge,
and health matters. A advisors, bank and investment accounts,
an unusually messy house
power of attorney social security numbers, tax forms and
— talk with them about
authorizes you, or your concerns and offer pension sources.
another party, to make assistance. Taking over the management of your
decisions for your parents’ money is not a simple task —
• Transition slowly.
parent. If a power of Don’t step in and take recognizing that parents are in declining
attorney is not over everything at once. health is hard. Broaching the topic of
Choose one financial providing financial assistance is
designated while your
responsibility, like completing complicated and accumulating full financial
parent is competent information often takes a long time. Regardless
tax forms, and offer your help. By helping with
then legal guardianship of all the drawbacks, it’s a lot easier than stepping
taxes, you can learn more about your parents’
may need to be in after your parents’ wealth has been lost to
finances and initiate discussions about topics
established in court. that might otherwise be difficult to introduce. fraud or careless management.
© 2011, Lincoln Investment Planning, Inc. • Registered Investment Advisor • Broker/Dealer Member FINRA/SIPC • 218 Glenside Avenue, Wyncote PA 19095 • www.lincolninvestment.com P129_09/11
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