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Thoughts on Long-Term Care Insurance |
Many clients tell me that their children will take care of them... |
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If you’ve cared for an elderly parent, you know why there’s so much fuss over long-term care insurance. After living one’s whole life paying taxes and insurance premiums, many people over age 50 figure their health insurance or Medicare will pay for care for illnesses lasting longer than 90 days. Nothing can be further from the truth. In a recent survey conducted by AARP, 49 percent of respondents stated that their preference would be to receive care at home with professional aides coming in a few hours per day. If you were to spend $200 per day for professional assistance, that totals more than $70,000 per year – in addition to heat, light, taxes and general living expenses such as food and toiletries. Maybe these numbers fit comfortably into your budget. But for many people, it can be a financial nightmare. Many clients tell me that their children will take care of them or the children tell me that they wouldn’t mind if the elderly parent moved in with them. To me, this option sounds a lot better than it may be in reality. That’s not to say that you don’t really love your parent – but it is meant to say that it simply may not be possible to deliver the needed care. It is possible that you need to work or care for your own children, or that mom’s needs require more skilled care than you are capable of delivering. Even if you beat the odds and can deliver the care, after about 9 to 12 months as the caregiver, it is common to feel run down and defeated by this daily grind. Another possibility is family resentment. The caregiver may begin to resent siblings who do not provide care, causing relationships to deteriorate. And if you don’t resent them now, they may resent you later after mom leaves all of her assets to you for being such a loyal child and providing such great care. I’m not saying that this will cause a family feud, that you’ll hate your life as a caregiver or that you and your siblings are destined for battle. What I am saying is that way too many of us take this huge risk without much forethought. The U.S. Department of Health and Human Services estimates that at least 70 percent of couples over age 65 will require some long-term care services at some point in their lives. The next time that you are talking to your financial advisor, ask for an opinion regarding what you should do. John P. Napolitano |
Financial planning is one of the fastest growing careers in America today. Have you ever wondered what you need to become a CFP® and how you can make it a successful career path? Written by veteran certified financial planning expert, John P. Napolitano, this book contains information on: education and training; the certification process, including differences state-by-state; tips for setting up in private practice; self-marketing techniques, including networking and client base expansion; and the all important client management and trust building.
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USFA, and U.S. Insurance Brokers, LLC are wholly-owned subsidiaries of U.S. Wealth Management, LLC. In NY, insurance may be offered through LFS Marketing & Insurance Agency Corporation. In CA, insurance may be offered through LFS Marketing & Insurance Sales Corporation. Some life insurance and annuity policies involve exclusions or limitations. For costs and complete details of coverage, contact your agent. |
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