Meet George - Case Study 1 (LTC Insurance for People Under Care)

George is 86 years old and a widower for 4 years.

He has had a recent move from his own home to an Assisted Living Community. He has a history of mini strokes with related dementia. He also suffers from high blood pressure. George has had multiple falls and has moderately impaired mental ability.

George currently resides in his own home. He suffers from symptomatic heart failure, high blood pressure, chronic obstructive pulmonary disease, and rheumatoid arthritis. He is mentally well and independent for most of the time. However, he requires a moderate level of assistance for most Activities of Daily Living.

Care at Home - Breakdown of Costs

The annual cost for the community is $65k. George has income from Social Security and a pension of $20k Shortfall leaving him a care gap of $45k. The proceeds from the sale of his own home worth $295k have been put into trust via an Estate Planner to leave a legacy to his 2 children and 4 grandchildren.

His daughter is his POA.

Worries and Solutions

George's daughter is worried that he will outlive his savings. With no increases, he has 7.7 years of funding.

With 5% annual increases at the Care company, this would reduce to a worrisome 6.5 years of funding.

Rather than drawing down on his savings of $350K, his daughter speaks to a care funding specialist who tells her about the Immediate Care Plan.

It is decided to get an ICP quotation to help in the overall solution planning for George. The community that George wants to go into no longer accepts Medicaid payments.