DON’T BELIEVE THE MYTHS ABOUT LONG TERM CARE

Discover the truth about long-term care

More people today will eventually need long-term care (LTC) services at home – and the cost for care is on the rise. Yet, too often, people stop short of preparing for future needs because they’re confused by the myths surrounding LTC products and services.

Seven Common Myths about LTC

With this information, you’ll be in a better position to help protect yourself, your family, and your future.

1 Myth: “A government program will take care of me.”

Fact: Government programs are difficult to qualify for and have very specific requirements for LTC services. A number of public programs – including Medicare, Medicaid and veteran’s services – may help pay for some LTC services in certain circumstances. Yet each program has specific rules that define which services are covered, when benefits are paid, who can qualify, and the dollar amounts individuals must pay on their own.

When people are able to qualify for Medicaid and the program pays their LTC costs, there’s a catch. Federal law requires states to recover the money Medicaid spent on their behalf from their estate after they pass away. Probate law dictates which assets states will include in estates, but typically this will include personal and real property, such as a home. This could force a person’s spouse to sell their home, or Medicaid could put a lien on the house in the amount of the LTC expenditures.

It’s important to remember that government programs are limited by availability and financial resources.

2 Myth: “I can save the money I’ll need for LTC services.”

Fact: Anyone who’s had this thought should stop to consider two crucial questions:

How will I save up the money? And (more importantly) why?

LTC services can be very expensive. The growing costs for care present a huge financial risk to older adults’ retirement dollars. Those who plan to take on the burden of LTC expenses for themselves and/or a spouse or other loved one could wipe out their lifetime savings much faster than they expect.

Consider the facts:

The average cost in 2024 is over $180,000 per year ($15,000 per month).
Of all Americans 65 and up today, 1-in-5 will require LTC services for five years or more.
At today’s average cost, a couple with $500,000 in assets would deplete their savings in just a few short years paying for LTC services.

3 Myth: “Only old people need LTC services.”

Fact: Among adults age 65 and older, about 70 percent will need some kind of help with the basic activities of daily living for weeks, months or even years as they age.

It’s wise to begin looking into LTC protection well before services are needed for two primary reasons: cost and need.

Potentially lower costs:

By applying for insurance protection at a younger age, policy premiums – which are guaranteed never to increase – are lower. At the same time, getting approved for a policy or contract is easier at a younger age, when health risks are fewer. By contrast, waiting to make the purchase means paying potentially higher age-based premiums, needing more protection and risking being declined.

Consider the need:

Even adults who aren’t elderly may need a little extra assistance from day to day. This can be due to an illness, injury, chronic condition or disability. Help may also be required due to aging-related declines in eyesight, hearing, strength, balance and/or mobility.

4 Myth: “I don’t need separate LTC protection because I have health insurance.”

Fact: LTC protection is not the same as health insurance, which is designed simply to cover the costs to cure individuals and return them to good health.

Health insurance is intended to help pay for medical care only, but LTC insurance benefits help support potentially costly LTC services, which can include bathing, eating, getting dressed and moving around. LTC services generally are required by those who are dealing with chronic illnesses, accidents or advanced aging and are progressive, with the level of needed care growing over time.

5 Myth: “I can’t afford LTC insurance.”

Fact: The cost for LTC protection can fit nearly anyone’s budget and financial goals. LTC protection may seem expensive, but not having it can be much costlier to individuals and families. LTC costs can quickly deplete a person’s hard-earned life savings.

LTC protection may seem expensive, but not having it can be much costlier to individuals and families.

6 Myth: “LTC protection pays for nursing home care only.”

Fact: LTC benefits are designed to help people get the type of care they want – when, where and how they want it. LTC protection provides many options in a range of medical, personal and social services in a variety of settings – home, assisted living and skilled nursing facilities.

About 80 percent of care provided at home is received from unpaid family caregivers. Many others receive care in a community setting, and not in skilled nursing facilities. LTC benefits help expand choices so people can receive services when, where and how they are most needed.

Selecting and receiving the desired care can require thought and preparation. Adults should consider where they’ll want to live as they age and whether their current residence can meet their changing needs or be modified to do so. LTC protection can be used to help people remain comfortably at home longer and avoid the necessity of a nursing home.

As needs become more pronounced, LTC protection provides access to the full spectrum – from adult day care to home health care visits to assisted living. Coverage can also include a bed reservation benefit to “hold your spot” in a facility if you require hospitalization. LTC benefits can provide for caregiver training, care coordination, respite care and even hospice care in end-of-life situations.

7 Myth: “We don’t need LTC protection because we have each other.”

Fact: The reality is that LTC situations impact not only the individual who needs care, but also the entire family – across generations. Family members who provide care without being paid are the most common source of LTC help in the U.S. today. Typically, the women of the family – wives, sisters, daughters – step into caregiving roles, often making great personal sacrifices to take on the extra responsibilities. But they might not be able to meet every need and be available every hour of the day.

Anyone who is considering caring for or receiving care from a family member should thoughtfully consider these questions:

Would you realistically want to care for the family member?
Would you trust a family member to provide care for you?
Are you physically and mentally capable of caring for each other?
Is caregiving what you really want for each other for your future?

LTC situations can take a heavy emotional and financial toll on even the closest, strongest families. With the extra help of LTC protection, a family member can enjoy independence longer without sacrificing comfort or having to feel like a burden to others.

Receive care in the setting you choose

Many people who receive LTC prefer to stay in their home.

We can help you plan to do just that.

More than just nursing home care

LTC is intended to provide support to those who need assistance due to severe cognitive impairment, or help completing Activities of Daily Living (ADLs) like eating or bathing. We can help you plan for almost any level of care, ranging from local care during the day to more specialized support:

Home health care
Assisted living
Nursing home
Adult day care
Hospice

Nearly 60 percent of those utilizing LTC services receive care in their homes.

To learn more about estate planning and elder law, visit Estate and Elder Planning by David Wingate at www.davidwingate.com. For an Initial Consultation, call (301) 663-9230. We can assist you with powers of attorneys, living wills, wills, trusts, Medicaid planning, and asset protection. With office locations in Frederick, Washington, and Montgomery Counties, Maryland, we are here to provide you with peace of mind.

Disclaimer:

The information provided in this blog post is for general informational purposes only and should not be construed as legal advice. While we strive to provide accurate and up-to-date information, laws and regulations regarding dementia, estate planning, and elder law can vary by jurisdiction and may change over time.

The content of this blog post is not intended to create an attorney-client relationship between the reader and Estate and Elder Planning by David Wingate or any of its attorneys. It is always recommended to seek professional legal advice tailored to your specific situation from a qualified attorney.

The applicability of legal principles can vary based on individual circumstances, and the information provided in this blog post may not necessarily address all possible legal issues or concerns. Therefore, it is advisable to consult with an experienced attorney before making any decisions or taking any actions based on the information provided in this blog post.

Estate and Elder Planning by David Wingate assumes no responsibility for any errors or omissions in the content of this blog post or for the accuracy, completeness, or adequacy of the information contained herein. Any reliance on the information provided in this blog post is at the reader’s own risk.

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We encourage readers to consult with an attorney regarding their specific legal concerns and to obtain professional advice tailored to their individual circumstances. Each person’s situation is unique, and the information provided in this blog post may not be applicable to everyone.

By reading this blog post, you acknowledge and agree that Estate and Elder Planning by David Wingate, its attorneys, and agents are not responsible or liable for any damages or losses arising from your reliance on the information provided herein.

Always consult with a qualified attorney for advice regarding your individual legal situation.

Disclaimer:

Always consult with a qualified attorney for advice regarding your individual legal situation.

DON’T BELIEVE THE MYTHS ABOUT LONG TERM CARE

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