• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Strategy Squad

Wealth Management, Financial Planning, Investment Advice

  • Home
  • OUR TEAM
  • What We Do
    • OUR MISSION, VISION & VALUES
    • FINANCIAL PLANNING
    • INVESTMENT SERVICES
  • EDUCATION
    • EVENTS
  • CLIENT ACCESS
    • FILE UPLOAD
  • BLOG
  • CONTACT US

EDUCATION

This month we are focusing our educational series on LONG-TERM CARE.

What are the risk factors that affect the likelihood of a person needing long-term care?

  • Age: Individuals over age 65 have a 70 percent chance of needing some type of long-term care services in the future, and 40 percent will need nursing home care, according to the U.S. Department of Health and Human Services.[1]
  • Gender: Women, on average, have longer life expectancies than men
  • Medical history: People with chronic health issues are more likely to need increased assistance with personal care in the future
  • Marital/domestic-partner status: Single people are more likely to seek paid care if they don’t have family members or friends able and willing to assist them. Having a spouse or domestic partner around to help may delay the need for professional medical service providers
  • Availability of family caregivers: If a person who has any children or family members that can step-in and help provide care for an aging parent can further the delay the cost of paid care

Long-term Care providers provide services that can take place in the home or in a facility. These services include:

  • Home-based and community-based care
    • Personal care to assist with Activities of Daily Living (ADL’s)
    • Homemaker services to help people stay in their home by providing assistance with activities like meal preparation, food shopping, laundry, and housecleaning
    • Home health care provided by trained medical personnel
  • Adult Day Care
  • Respite Care – to help relieve family caregivers when they are caring for loved ones with terminal or severe chronic illnesses
  • Hospice Care
  • Skilled nursing care facilities
  • Residential care facilities for the elderly (different from skilled nursing facilities in that they don’t provide medical care)
  • Continuing care retirement facilities and other retirement home communities

How much does Long-term Care cost?

The costs of Long-term care depends on the area you live in and the type of services needed.  In California, for instance, today’s median annual cost for various types of long-term care services currently are:[2]

  • $52,624 for home health aide services
  • $48,000 for care in a residential care facility for the elderly (RCFE)
  • $91,250 for a semi-private room in a skilled nursing facility (SNF) Keep in mind that these are the amounts needed to pay for care today
  • These costs are rising rapidly at an annual compound rate between 2-5 percent inflation.

As one can see, the cost of long-term care expenses can be catastrophic to one’s financial situation.

What options do I have to self-insure for Long-term care?

  • Stand-alone policies that provide long-term care insurance only, or provide long-term care benefits as a rider to another policy like an annuity, life insurance, or critical illness contract
  • Group long-term care insurance (Check the group LTC insurance “Certificate of Coverage” to understand the benefits and insured’s rights under the plan)
    • LTC insurance premiums paid by the employer on behalf of the employee are 100% tax deductible, and the employee can exclude 100% of the premiums paid from their gross income.

Additional Resources:

Cost of Long-term Care expenses

https://www.genworth.com/about-us/industry-expertise/cost-of-care.html

http://agewave.com/what-we-do/landmark-research-and-consulting/research-studies/america-talks-protecting-our-families-financial-futures/

2016 CA Dept of Insurance Long-term Care Rate & History Guide

http://www.insurance.ca.gov/01-consumers/105-type/95-guides/05-health/01-ltc/index.cfm

http://aging.ca.gov/

www.RUReadyCA.org

There are additional state-run programs designed to help people remain in their home and receive care rather than having to enter a residential long-term care facility.  In California these agencies are:

  • Multipurpose Senior Service Program (MSSP)
  • In-Home Supportive Services (IHSS)
  • Program of All-Inclusive Care for the Elderly (PACE)
  • California Association of Area Agencies on Aging (C4A)

[1] From  U.S. Department of Health and Human Services, National Clearinghouse for Long-Term Care Information Web site, www.longtermcare.gov

[2] https://www.genworth.com/about-us/industry-expertise/cost-of-care.html

Primary Sidebar

CONTACT US

Service Inquiry

    Want to book a consultation or learn more about our services? Check the services you're interested in, and we will contact you!
  • Price: $0.00 Quantity:
  • This field is for validation purposes and should be left unchanged.

Nicole Middleton Holloway, the principal of Strategy Squad, is an investment advisory representatives of Natural Investments LLC. Natural Investments is an independent Registered Investment Advisor firm. Strategy Squad is not a registered entity and is not an affiliate or subsidiary of Natural Investments.

Footer

STRATEGY SQUAD

  • FINANCIAL PLANNING
  • INVESTMENT SERVICES
  • EDUCATION
    • EVENTS

CATEGORIES

  • Business
  • Community Investing
  • Company News
  • Estate Planning
  • FEATURED
  • Financial Planning
  • Giving
  • Health Insurance
  • Investments
  • Long-term Care
  • Money management
  • New couples
  • Retirement
  • Saving
  • Socially Responsible Investing
  • Uncategorized
  • Women

BROKER CHECK

OUR LOCATION

Strategy Squad Insurance Services, LLC
1901 Harrison Street,
Suite 1100
Oakland, CA 94612
888-65-SQUAD
(888-657-7823)
510-343-9564 Fax
CA Insurance License
# 0K68755

OUR MAILING ADDRESS

Strategy Squad Insurance Services, LLC
PO Box 431
Orinda, CA 94563

CONTACT US

  • Email
  • Facebook
  • Instagram
  • LinkedIn
  • RSS
Copyright © 2021 Strategy Squad Insurance Services Designed and Developed at Wellington Studio