THE MISCONCEPTIONS OF LONG-TERM CARE
There are plenty of things that need to be clarified about long-term care. Some believe that health insurance and Medicare will take care of these expenses. The majority of costs for long-term care are out-of-pocket expenses until assets are depleted. The following are eight common misconceptions you might hear about long-term care planning and what you need to know:
Myth#1: “I already have health insurance. I’m covered.”
Fact: Health insurance won’t cover non-medical related needs, such as getting dressed, bathing, or eating, which may become necessities when dealing with serious medical issues that are related to aging. Health care insurance also won’t cover home modifications, allowing them to be safe and comfortable in their home as they age.
Myth#2: "Medicare or Medicaid will cover my long-term care."
Fact: Most people incorrectly think Medicare will pay for long-term care services. In reality, Medicare does not generally cover long-term care. Medicare pays for skilled care in a nursing home only for short periods (only up to 100 days) during which you are recuperating following a hospital stay for a related condition. Once your care needs stabilize, and you need personal or custodial care, Medicare will not pay these costs. Medicare will only pay for care at home under very limited circumstances. Medicaid pays for long-term care only for people with very low assets and limited income.
Myth#3: “Long-term care is only for the elderly.”
Fact: The need for long-term care can arise at any time in a person’s life. While the majority of people who require long-term care are elderly, younger people can require it anytime due to severe unexpected illnesses, diseases, injuries, or accidents. This can quickly deplete assets if you are not prepared with the right insurance.??
Statistics show that 40 percent of people receiving long-term care are working-age adults under the age of 64 years.1 Long-term care is most associated with aging, but anyone may need long-term care at some point. Accidents, chronic illnesses, and disabilities can occur at any age, requiring many to seek assistance with activities of daily living.
Myth#4: “My family will take care of me.”
Fact: While families do and will continue to provide care, it is not possible to know for certain whether your family will be available and able to care for you when the time comes. Consider these statistics:
■ 34.2 Million Americans have provided care to an adult age 50 or older in the past 12 months.1
■ 24.4 Hours is the average number of hours caregivers provide care to their loved one(s).1
■ 23% of caregivers provide 41+ Hours of care to their loved ones on a weekly basis.1
With these numbers in mind, it will be essential to set expectations and have a real conversation about the financial and emotional impact that providing care for you will have on your family and friends. Caring for a family member can be a huge financial and emotional burden on your loved ones. It is essential to decide how you want to be cared for and ensure that you are protecting your family. The fact that family and friends may help supplement care does not have any bearing on the cost of coverage.
Read this related article: https://www.dhirubhai.net/pulse/caregiver-crisis-america-tina-tjahjadi
Myth#5: “I probably won’t need long-term care.”
Fact: 70% of people age 65 or over will need long-term care services and support at some point in their lives.2 ? ? ?As individuals are consistently living longer, the need is more important than ever before. It’s possible that the type of care you might need will require professional help or a stay in a nursing home or assisted living facility.
Myth#6: “I’ll never end up in a nursing home.”
Fact: It’s possible this won’t be the case, but it’s worth planning ahead should it be a need down the line. As many as 43% of individuals receive their long-term care in the comfort of their own homes. This home care is a costly option and requires planning, including considering the expenses necessary for any home modifications needed to help with mobility issues
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Myth#7: “I can’t afford long-term care insurance.”
Fact: Long-term care insurance is more affordable than you might think and can be tailored to meet your needs and your budget. The costs of long-term care insurance can be managed by creating a retirement plan or a financial plan that is right for you. They can also be more affordable at a younger age, so it is important to start planning before you reach retirement.
Myth#8: "It is too late to start long-term care planning."
Fact:? The average life expectancy of men and women is approximately 80 years old. It’s not too late to start planning now for your future care needs and prevent becoming an unnecessary burden on your family. While it is always better to begin planning early, such last-minute strategies help you retain a large percentage of all that you have worked so hard to gain.
Myth#9: “My savings will cover any care I might need.”
Fact: On average, Americans between the ages of 55 and 64 have an estimated $104,000, in their savings account. Considering the costs associated with long-term care, your savings will be exhausted before your LTC needs. The average cost of LTC in the United States is $4,273 per month for home care3
Equipped with this information against common myths, you can be better prepared to put a plan in place to ensure long-term care needs can be met for you and your family.
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Resources:
12015 Report: Caregiving in the U.S., www.caregiving.orgopens in new window. Conducted by National Alliance for Caregiving and AARP Public Policy Institute, June 2015
?22020 U.S. Department of Health and Human Services (https://acl.gov/ltc/basic-needs/how-much-care-will-you-needopens in new window). Site accessed 04/19/21.
3 Nationwide, Compare Long-Term Care Costs From State to State, https://nationwidefinancialltcmap.hvsfinancial.com, Jan 2020
I welcome the opportunity to sit down for a FREE consultation and assessment of the needs of LTC with our financial specialist to discuss LTC planning and tools that help you prepare for future long-term care.