Caring for Loved Ones: LTC Insurance That You Can Trust

In life, the certainty of needing assistance as we age is undeniable. Picture a future where daily living tasks become a challenge, and the question arises: How do you plan and budget for this phase of life?

As the population grows older, especially with the baby boomer generation advancing into the 85-and-above age bracket, it is anticipated that there will be a notable surge in the demand for long-term care or caregiving services.

Long-term care (LTC) involves providing daily living support to individuals facing challenges in carrying out fundamental activities due to physical or mental limitations. To gain more insight - you can read about LTC’s importance here.

According to a completed joint study by the Urban Institute, Department of Health and Human Services (HHS), and Office of Disability, Aging and Long-Term Care Policy (DALTCP) in 2017, around 70% of Americans hitting the age 65 will require long-term care in their later years before passing. Approximately 48% of the studied demographic receive some form of paid care throughout their lifetime.

The demand for extended care frequently rises as an individual ages, yet it is not limited to the elderly. Long-term assistance may be necessary at any point in our lives due to several factors.

Here are four leading factors with relevant statistics that contribute to the need for extended care:

• Aging

- The aging population is nearly projected to be at 2.1 billion by 2050 which becomes a significant driver for the need for long-term care. As people age, they are more likely to experience serious health conditions and disabilities that require support and care.

• Chronic Illnesses

- Almost 80% of Americans live with one or more chronic illnesses such as diabetes, arthritis, and heart disease, which can require significant care for days, weeks, or even months before death. These health problems can also make it difficult for an individual to perform daily activities and may necessitate long-term care.

• Severe Cognitive Impairment or Cognitive Decline

- In 2020, an estimated 5.8 million Americans living with Alzheimer's disease dementia experienced cognitive decline, which can impact their ability to manage daily tasks and may require long-term care to ensure their safety and well-being

• Injuries

- More than 1 out of 4 adults suffer from falling injuries each year. Accidents or injuries like these can result in long-term disability for adults and the elderly, requiring extended care to manage pain, mobility limitations, and other consequences.

Medallion Financial Resources: Long-Term Care Insurance

Caring for an aging loved one is a precious time, but it can also be fraught with financial anxieties towards one's finances. Long-term care (LTC) expenses can feel like a looming storm cloud, casting a shadow over family budgets and well-being.

The numbers paint a stark picture:

• The average American needs $138,000 in personal savings for LTC, with costs varying widely depending on health care provider, setting, and location.
• Medicare, the primary health insurance for Americans over 65, barely covers LTC, leaving families to shoulder the majority of the burden.
• Medicaid, which helps cover LTC for low-income individuals, has strict eligibility requirements, leaving many families without a safety net.

Family caregivers are facing a lot of financial stress, and they are also worried about whether they can provide good care for their loved ones.

Staffing shortages and reports of neglect in some LTC facilities add another layer of stress for families struggling to make the best decisions for their loved ones.

Standard health insurance doesn't cover expenses for long-term care services, and the considerable expenses associated with such care often pose financial difficulties for families. Leading to considerable out-of-pocket expenses, and frequently entails substantial commitments.

You can read more about other realistic ways to pay for Long Term Care or LTC insurance alternatives here.

One effective method to address these potential costs is through long-term care insurance. This specialized insurance is structured to pay or reimburse covered long-term care costs.

It covers long-term care services, for 65 or older adults or those with a chronic or disabling condition, such as:

• nursing home care
• home health care
• assisted living facilities
• personal care
• adult day care center

Long-term care insurance is a crucial consideration for individuals who wish to secure their assets and ensure that they receive high-quality long-term care services.

It can provide a sense of security for individuals and their families, knowing that they will be able to afford the healthcare providers they need if they develop a chronic illness or disability.

It's advisable to explore the most fitting benefits for your personal needs and seek advice from legal and financial experts like us at Medallion Financial Resources when thinking about LTC insurance.

Medallion Financial Resources Now Covers Insurance For Those Under Care

Looking into long-term care insurance coverage, especially for those under constant care calls for foresight and preparation, as it is where the changing healthcare and financial circumstances come together.

Read one of our insightful case studies about Long Term Care Insurance for People Under Care.

We at Medallion Financial Resources can now offer insurance coverage to those under care. We recognize the unique challenges individuals face in times of health care needs.

Unlike one-size-fits-all plans, we stand as a beacon of understanding, offering personalized insurance solutions that consider your well-being and financial concerns.

We pride ourselves on being reliable experts and consistently delivering high-quality information, services, and products to support our clients in achieving their financial goals.

Our focus remains steadfastly on our clients' best interests, reinforcing our position as trustworthy partners in their financial journeys.

In this blog, we will impart our expertise and talk about:

• Why Long Term Care (LTC) planning is important?
• Why look into Long Term Care Insurance?
• Types of Available Long-Term Care Insurance
• Challenges in Getting Long-Term Care Insurance

Why Long Term Care (LTC) planning is important?

Planning ahead of long-term care can help safeguard your assets and income for purposes other than care, such as preserving the well-being of your spouse or loved ones. It also increases the likelihood of leaving an inheritance, as it reduces the need to deplete your financial resources to cover long-term care expenses.

Additionally, preparing for long-term care minimizes emotional and financial stress on you and your other family members, involving them in decisions and easing the burden when the time comes.

Delaying plans for long-term care is a common tendency as most folks generally avoid contemplating a future where such care might be necessary. Typically, people only dive into the world of long-term care when they or a loved one urgently needs it.

Unfortunately, this late approach often leads to restricted choices due to a lack of information, an immediate demand for services, and inadequate funds to cover desired options. Taking the initiative to plan for medical insurance and long-term care in advance gives you the upper hand in home care, allowing better control over your future outcomes.

Research by the Urban Institute revealed that roughly half of seniors under care will require significant help, known as high-level personal assistance, before passing away. While the average duration is two years, with an average cost of nearly $140,000, the reality is far more diverse.

One in five older adults will need this support for less than a year, while 14% will require it for over five years. Similarly, financial burdens vary drastically. While 10% of seniors will spend less than $25,000 on total care, the expenses can easily exceed $250,000 for 15%.

This wide range puts the emphasis and importance of planning for diverse and personal care needs and costs when considering long-term care for an aging individual.

Why look into Long Term Care Insurance?

One of the primary insurance benefits of long-term care insurance is that it can help safeguard your assets. Without insurance, the cost of long-term care can quickly deplete your savings due to medical costs and leave you with little to pass on to your loved ones.

Long-term care insurance can also help individuals maintain their independence and dignity by allowing them to receive health care in their own homes or an assisted living facility in a community setting, rather than in nursing homes with health care providers.

Another advantage is that it can provide more flexibility and options than Medicaid. Medicaid is a government program that provides long-term care services for individuals with limited income and assets.

However, Medicaid has strict eligibility requirements, and its services may be limited. Long-term care insurance can provide more options for care and allow you to choose the type of care that best meets your needs.

Long-term care insurance can also enhance government benefits. For example, if you are a veteran, long-term care insurance can help you qualify for additional benefits through the Department of Veterans Affairs.

Additionally, some long-term care insurance policies offer riders that can provide additional benefits, such as coverage for home modifications or caregiver training.

While LTC insurance can be expensive, it can be a wise investment for individuals who wish to protect their assets and ensure that they receive quality long-term care services.

The cost of your policy will depend on factors such as:

• Your Age
• Health
• Amount of coverage you choose

It is important to compare policies from different insurers to find the best coverage at the most affordable price.

Types of Available Long-Term Care Insurance

An insurance company can offer different types of long-term care insurance policies available from various insurance companies, each with its own features and benefits. The three main types of LTC insurance are traditional, hybrid, and rider policies. Here are the key points that consumers will likely benefit from:

Traditional Long-Term Care Insurance

This is a standalone policy that covers the expenses of long-term care services and support. It allows the policyholder to choose the amount of coverage, duration, and waiting period before receiving benefits.

However, many insurance companies no longer offer traditional policies, and some insurance commissioners that do may raise annual premiums after purchase.

Hybrid Long-Term Care Insurance

This type of policy pairs long-term care insurance with a traditional, life insurance death benefit policy. It can provide long-term medical care coverage if needed or a death benefit to heirs if long-term care is not required.

Rider Long-Term Care Insurance

A rider is an add-on to existing insurance policies that provide additional benefits at an extra cost. In the case of long-term care insurance, it can be added to a life insurance policy to cover long-term care expenses.

Challenges in Getting Long-Term Care Insurance

The challenges in obtaining long-term care insurance are multifaceted and have significant implications for individuals, families, and healthcare systems. As the global population ages, the demand for long-term care services for the elderly is escalating, leading to a substantial economic burden.

The low uptake of long-term care insurance can be attributed to several factors, as supported by the provided sources:

High Cost of Insurance

The cost of long-term care insurance is a significant barrier for many individuals. The increasing premiums and the overall expense of disability insurance have made it challenging for people to afford and maintain their lifetime coverage amount.

Belief in Alternative Coverage

Some individuals believe that other products or that government programs or support already address the risk of long-term care, leading to a perception that long-term care insurance may not be necessary.

Challenges in Understanding and Choosing a Policy

The complexity of insurance products and the difficulty in selecting a suitable policy have contributed to the low uptake of LTC insurance. Many individuals struggle to understand the various options available to them, which hinders their ability to make informed decisions.

Insurance Company Practices

Denial or discontinuation of benefits, poorly drafted contracts, and limited coverage of some policies have eroded trust in long-term care insurance. These practices have deterred people from investing in such coverage.

Medallion Financial Resources Insurance Now Got You Covered!

At the heart of what we do lies a firm commitment to integrity and professionalism in every interaction with you, our valued client. We believe in truly understanding your financial landscape, not just the numbers on a page.

Our 25-year legacy in serving individuals and businesses speaks volumes about our dedication to fostering lasting relationships because your financial well-being isn't just a destination, it's a path we walk hand-in-hand, securing a brighter future for you and those you care about.

Forget one-size-fits-all insurance plans!

We start by getting to know your financial hopes and dreams. Then, we crunch the numbers and build a custom roadmap to get you there. We'll be by your side as you take each step, making sure you stay on track and overcome any bumps. Plus, we'll check in every year to make sure your plan keeps up with your changing goals.

If you have any questions or need assistance, don't hesitate to contact Medallion Financial Resources at 941-486-0305. Let's make your financial future awesome, together!

Let's make your financial future awesome, together!

Conclusion:

As our population ages and chronic health concerns rise, the need for long-term care (LTC) soars. While Medicare and Medicaid offer some support, the financial burden of LTC often falls on families, creating immense strain.

Recognizing this critical need, Medallion Financial Resources takes a bold step - extending insurance coverage specifically for those navigating health challenges

We encourage readers to take a proactive stance toward long-term care planning, emphasizing the importance of being well-informed about available options. Medallion Financial Resources stands as a reliable partner, dedicated to walking hand-in-hand with clients, securing a brighter financial future for individuals and their loved ones.

Through understanding, commitment, and personalized planning, the aim is to make the financial future truly awesome, together.