12 slides with the basics on long-term care insurance, with lots of embedded links.

1. Financial
Planning
and
Long-­‐Term
Care:
Getting
Started
June
2016

2. What
Is
Long-­‐Term
Care
Insurance?
Definition:
You
pay
an
annual
premium,
and
if
you
need
long-­‐
term
care
the
policy
pays
out
a
daily
or
monthly
benefit.
Doesn’t
Medicare
cover
this?
• Medicare
and
health
insurance
covers
hospital
care,
and
some
home
care,
but
only
after hospitalization.
• Medicare
does
not
cover
Activities
of
Daily
Living
(ADL).
This
is
when
a
person
needs
help
with
bathing,
dressing,
cooking,
cleaning,
etc.

3. Medicare
vs.
Medicaid
• Medicare
PART
A, also
known
as
the
hospital
insurance
program,
covers
inpatient
hospital
services,
skilled
nursing
facility,
home
health
and
hospice
care.
Only
covers
the
first
100
days
after
hospitalization.
• Medicaid offers
long-­‐term
care,
but
qualifications
vary
by
state
and
by
facility.
This
requires
detailed
planning
to
minimize
the
impact
on
your
taxes,
estate,
and
your
spouse/partner.
Sources
http://www.advisorperspectives.com/articles/2013/06/18/what-­‐advisors-­‐need-­‐to-­‐know-­‐about-­‐
health-­‐care-­‐planning/3
http://money.usnews.com/money/personal-­‐finance/articles/2016-­‐06-­‐09/what-­‐to-­‐consider-­‐if-­‐you-­‐
may-­‐depend-­‐on-­‐medicaid-­‐for-­‐nursing-­‐care

4. Demand
Is
Rising
as
People
Live
Longer…
• A
55-­‐year-­‐old
male
has
a
life
expectancy
of
25
years
• A
55-­‐year-­‐old
female
has
a
life
expectancy
of
29
years
• A
65-­‐year-­‐old
male
has
a
life
expectancy
of
18
years
• A
65-­‐year-­‐old
female
has
a
life
expectancy
of
20
years
Your
genes,
habits,
and
family
history
can
make
a
big
difference!
Source
Social
Security
Administration
https://www.ssa.gov/oact/STATS/table4c6.html

5. …But
Costs
Are
Also
Rising
• Rising
Insurance
Premiums:
There
have
been
dramatic
rate
hikes
in
the
past
several
years.
In
2016
the
premiums
in
Pennsylvania
more
than
doubled
to
$8,000
annually.
So
people
either
pay
up
or
lose
coverage.
• Women:
Women
live
longer
than
men,
and
insurance
companies
are
allowed
to
charge
women
more.
• Shrinking
Options:
In
the
1990s
over
100
companies
sold
long-­‐term
care
insurance.
As
of
2014,
only
12
insurance
firms
still
sell
it.
Sources:
http://www.usatoday.com/story/money/columnist/brooks/2014/09/09/retire-­‐long-­‐term-­‐care-­‐insurance-­‐baby-­‐
boomer/14968081/
http://money.usnews.com/money/personal-­‐finance/articles/2016-­‐03-­‐10/why-­‐no-­‐one-­‐can-­‐afford-­‐long-­‐term-­‐
care-­‐insurance-­‐and-­‐what-­‐to-­‐use-­‐instead
http://newoldage.blogs.nytimes.com/2013/02/06/for-­‐women-­‐reduced-­‐access-­‐to-­‐long-­‐term-­‐care-­‐insurance/

6. Estimating
the
Cost
of
Care
and
Insurance
Cost
of
care
Here
is
a
link
to
estimate
the
costs
of
long-­‐term
care
in
your
state:
http://longtermcare.gov/costs-­‐how-­‐to-­‐pay/costs-­‐of-­‐care-­‐in-­‐your-­‐state/
Cost
of
Insurance
• I
hesitate
to
put
any
number
down
since
rates
are
rising
so
fast,
and
rates
vary
based
on
age,
health,
and
gender.
• The
average
premium
in
2007
was
$2,207
per
year.
I
am
guessing
that
the
average
premium
has
doubled
by
2016.
http://longtermcare.gov/costs-­‐how-­‐to-­‐pay/what-­‐is-­‐long-­‐term-­‐care-­‐insurance/long-­‐term-­‐care-­‐
insurance-­‐costs/

7. Sample
Estimate
of
Costs
• This
article
from
Nerd
Wallet
offers
a
good
guide
to
LT
Care
Insurance.
It
has
links
to
all
of
the
companies
that
sell
it,
and
it
was
written
in
June
of
2016.
https://www.nerdwallet.com/blog/insurance/long-­‐term-­‐care-­‐insurance/
• According
to
this
article,
a
policy
covering
$150
per
day
for
three
years
would
cost:
• A
55-­‐year
old
man
would
pay
$1,015
per
year
• A
55-­‐year
old
woman
would
pay
$1,490
per
year
• A
60-­‐year
old
husband
and
wife
would
pay
$2,010
per
year
• Certain
premiums
are
tax
deductible;
see
the
link
above
for
details.

8. Hybrid
Insurance
• New
forms
of
insurance
are
available
that
combine
whole
life
insurance
with
long-­‐term
care
insurance.
• This
helps
address
a
big
complaint:
Long-­‐term
care
insurance
has
no
benefits
unless
you
use
it,
and
people
feel
the
insurance
premiums
are
a
“waste.”
(That’s
not
true,
but
that’s
how
people
feel.)
• Hybrid
insurance
may
be
worth
it
for
some
people,
but
these
contracts
are
complex,
so
do
your
homework
before
you
sign.
Source:
http://www.cnbc.com/2016/05/31/weigh-­‐the-­‐many-­‐options-­‐with-­‐long-­‐term-­‐care-­‐
insurance.html

9. Other
Options
for
Long-­‐Term
Care
• Continuing
Care
Retirement
Community (CCRC):
Down
payment
of
$200,000
to
$1M
plus
monthly
fees.
The
decision
depends
heavily
on
your
lifestyle
and
location
preferences.
• Self-­‐financed
care:
A
private
nursing
home
costs
$100,000+
per
year,
and
a
home
health
aide
costs
roughly
$23,000
per
year
(20
hours
per
week
at
$22
per
hour).
You
can
pay
from:
• Investments
• Income:
Social
Security,
pensions,
annuities,
etc.
• Home
equity
• Medicaid:
Often
the
last
resort,
especially
given
the
impact
on
estates

10. Keep
This
in
Mind:
Tools
for
Seniors
Are
Improving
• There
is
a
wave
of
innovation
that
is
helping
people
remain
independent,
mobile,
and
socially
connected.
• The
Baby
Boomer
market
has
tremendous
buying
power,
and
this
creates
strong
demand
for
products
and
services
that
help
seniors
with
daily
activities.
• Small
changes
in
a
living
space
can
make
a
big
difference
(grab
bars,
raised
seats,
etc.)
• Hiring
occasional
help
is
also
an
option
(heavy
cleaning,
moving
furniture,
etc.)

11. Next
Steps
1. Think
about
your
goals
2. Learn
about
the
trade
offs
3. Consider
how
you
feel
about
different
lifestyle
options

12. Disclaimer
All written content is for information purposes only. Opinions expressed herein are solely
those of Right Blend Investing and our editorial staff. Material presented is believed to be
from reliable sources, however, we make no representations as to its accuracy or
completeness. All information and ideas should be discussed in detail with your individual
adviser prior to implementation. The presence of this article shall in no way be construed
or interpreted as a solicitation to sell or offer to sell investment advisory services to any
residents of any State other than the State of New Jersey or where otherwise legally
permitted. This is not a complete discussion of the information needed to make a decision
to open an account with Right Blend Investing, LLC. There are always risks in making
investments, including the investment strategies described.
RightBlendInvesting,LLCisa registeredinvestmentadvisorin thestate ofNew
Jersey.Therearealwaysrisksin makinginvestments,includingthepossibility of
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