The Basics of Long-Term Care Planning.....

Is CAREfidence missing in your financial plan?

Most Americans are unprepared for the loss of independence or a cognitive decline, resulting in the need for Long-Term Care (LTC). Fewer than 20% have addressed it in their planning, as seen in a survey conducted by OneAmerica and Hanover Research. Now is the time for you to fill in that missing piece and implement the LTC component for your Estate, Financial, Retirement, or Risk Management planning.

Let's begin with understanding the "Planning Gap" for Long-Term Care.....

Questions To Ask As You Begin The Process...

Is the risk of a Loss of Independence or Cognitive Decline properly addressed in my current planning

LTC Planning addresses this risk, and it should NOT be a stand-alone item on a checklist since there is an intricate connection between health and wealth. A holistic approach can lead to better financial outcomes, and everyone who this planning could impact should be involved and have a clear understanding of how and why an LTC component will fit into comprehensive financial, retirement, estate, and risk management planning in place or being considered.

What role will Medicare play if or when there's a need for Long-Term Care?

It’s vitally important you understand the healthcare benefits Medicare provides and, perhaps more importantly, that Medicare excludes chronic and age-related conditions or illnesses that necessitate the need for LTC! By taking a proactive approach, you can dispel the myths, inaccuracies, and falsehoods associated with Medicare, learn that MediCARE and MediCAID are not linked, and begin planning accordingly.

How can Long-Term Care Planning reduce future burdens on my loved ones or me?

It's helpful to understand how LTC Planning is for a broad scope of care, not just a Nursing Home, and that a plan can help transfer the financial risk away from your family or loved ones. There should also be a clear understanding of what the plan will cover and where those needs might actually be met because, without this knowledge, it may be difficult for you to conceptualize how and why government safety net programs are not a planning alternative. Finally, LTC Planning will address the impossibility of quantifying the physical & emotional costs on loved ones when there isn't planning for LTC.

How much of your assets are currently allocated to pay for expenses excluded by Medicare or Health I

The correct answer is "nearly 100%".....WHY? Until you "spend down" assets and qualify for Medicaid, you are currently allocating almost 100% of your assets to cover the cost of any healthcare expenditures not covered by Medicare or some form of health insurance.

If you needed care today, what assets would you tap first to pay for it?

There are only six potential sources......

After-tax dollars, savings, CD, etc.
Excess Income from cash flow
Retirement Accounts
Life Insurance or its cash values
Annuities or their cash values
Home Equity or a reverse mortgage.

Your answer can help decide how your LTC Plan will be designed and funded....