As baby boomers age, families have more options for providing and paying for their care. Much has changed in the past two decades when it comes to long-term care options and how to fund them. Baby boomers and subsequent generations will need to plan for long-term care in a different way than their parents in light of factors such as longer life spans, the uncertain future of entitlement benefits, and rapidly rising medical costs. Choices when it comes to planning for long-term care include earmarking savings for long-term medical expenses, relying on entitlement benefits, or depending on their families. Long-term…
One of the greatest fears of older Americans is that they may end up in a nursing home. This not only means a great loss of personal autonomy, but also a tremendous financial price. The average nursing homes cost, in our area, is approximately, $10,000 per month, that’s $120,000 a year, and the average stay in a nursing home is 4 years, that’s $480,000. For many people this will wipe them out financially. Most people end up paying for nursing home care out of their savings until they run out. Then they can qualify for Medicaid to pick up the…
The costs of long term care are increasing every year, but most families do not understand what they will be confronting when it is their time to start paying for care. Too many people wait until they are in the midst of a crisis situation before they start trying to figure out how the world of long term care works. Long term care is a very expensive proposition. Families can go broke trying to provide for a loved one. New approaches to fund long term care must be encouraged, and converting life insurance policies into a Long Term Care…
One of the most difficult decisions in long-term care planning is whether to purchase long-term care insurance (LTCI) and which of the wide variety of products to purchase. On the one hand LTCI premiums are high, they may be raised in the future, and if you are purchasing policies in your 50s and 60s, the need is probably many decades in the future. On the other, many are saved by their LTCI, able to choose their own care setting rather than rely on what is covered by Medicaid in their state, more comfortable hiring necessary help if doing so doesn’t…
Thursday, February 27, 2014 Courtyard Gaithersburg Washingtonian Center 204 Boardwalk Place, Gaithersburg MD 20878 Times 2.30 pm and 6.30 pm This seminar will help you understand the basic details about Trusts, Estates and Long Term Care. Types of Trusts and when should a Trust be used The difference between a revocable and irrevocable Trust Trusts that provide for future generations How to avoid probate How to preserve your assets Please RSVP as limited seating. Cal 240 453 0070 (Rockville office) or 301 663 9230 (Frederick office) or email jaynika@davidwingate.com
As the term is used here, self-funding refers to paying for long-term care costs out of pocket with personal or family income, savings, pension benefits, stocks, bonds, and other investments. Contributions from children or other relatives may also come into play. Any financial product designed to grow and accumulate funds can be used as a way to save for future long-term care needs. However, most people find that, even when done in advance, saving a sufficient amount every month or every year for long-term care expenses is extremely difficult. Those who are older may not have enough time to ensure…
While a frank and informed discussion about present and future medical and personal needs can secure the most suitable type of long-term care at the right time, many people find the topic discomforting. Others are in outright denial about the possibility of requiring long-term care. While the aging population, longer life spans, rising health care costs, and an ever-increasing strain on government services ought to compel all those over the age of 40 to prepare for the possibility of long-term care, that’s not the case today. Most Americans have not seriously considered or planned for the emotional and financial consequences…
Given the likelihood of needing long-term care and the tremendous cost that this care entails, it is important that individuals plan for it—and the sooner the better. Certainly, there are barriers. For example, people tend not to think about becoming older and needing care, or they don’t anticipate that they will ever need care themselves; they resist the idea of becoming dependent. They may believe (erroneously) that Medicare or their current health insurance will cover the cost of this type of sustained, ongoing care. They may find it difficult to raise this issue with their loved ones. Or they may…
People may suddenly need long-term care after a crisis occurs, but for many, the need develops gradually. Older individuals are the primary users of long-term services, because functional disability increases with age. In 2008, about 9 million Americans over the age of 65 required LTC services. By 2020, that number will increase to 12 million. However, while most people who need long-term care are 65 or older, such services can be necessary at any age. According to the U.S. Department of Health and Human Services, the risk of needing LTC is fairly high. About 70 percent of individuals over age…
Long-term care recipients can be of any age. Conditions that may lead to the need for long-term care include disability, mental decline or illness, AIDS, stroke, and simple frailty. The need for long-term care is primarily measured by assessing limitations in performing or managing tasks of daily living, including self-care and household tasks. Obviously, the likelihood of needing long-term care assistance increases with age. The aging of Americans will only increase the need for quality long-term care options. The growth in demand will be driven by increases in the numbers of elderly as a result of the aging of…
Frederick, MD 
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