F9
FARM & RANCH
THE NORTH PLATTE TELEGRAPH
NOVEMBER 2020
GIVE THE GIFT OF PEACE OF MIND
Now, there are so many options, plans are much more comprehensive covering home health, hospice, respite care, adult daycare, assisted living, as well as nursing home expenses. Most will even cover home modification expenses if you want to stay in your own home. With the passage of the Deficit Reduction Act of 2005 came Long Term Care Partnership programs. It’s an initiative between state and private insurance companies to encourage Americans to plan for their long-term care needs. When buying a policy, be sure to ask for one that is Partnership Qualified. It doesn’t cost anymore but it protects some of your assets from the Medicaid spend down requirement. In addition, there are now several hybrid plans out there that combine long-term care and life insurance or an annuity. If you don’t need the long-term care, you’ll be able to pass the death benefit to your beneficiaries. So, plan ahead and visit with your friendly insurance agent. It will keep you in control of what’s important to you, thus keeping your independence and your dignity. Give the gift of peace of mind both to yourself and your family. If you have questions or want to visit about this topic, call Rebecca Nordquist at Phares Financial Services at 308-532- 3180 or email at RebNordquist@msn. com.
Many Americans believe that Medicare or Medicaid will automatically pick up the tab. Generally, Medicare doesn’t pay for long-term care and it doesn’t cover non- skilled or custodial care. Medicaid eligibility is based on income and personal resources. They will force you to spend down your assets before they’ll pay. Consequently, it leaves very little for the other spouse. Some families think that they’ll sidestep the Medicaid eligibility guidelines and move assets to family members but the states have figured that one out. Now they’ll look at the past 5 years to ensure that didn’t occur. In addition, many states want the money back if Medicaid does pay so families are discovering that homes or farms left to the kids have a lien slapped on the property that has to be paid before the title can pass onto the next generation. According to information from the Centers for Medicare and Medicaid Services, people should consider long- term care insurance if they own assets of at least $75,000 (excluding their home or car); have an annual retirement income of at least $35,000 for an individual or $50,000 for a couple; and are able to pay premiums without financial difficulty. The younger you are when you purchase the policy, the less you pay for premiums. In addition, if you wait until you are ill to apply, your application may get declined. Long-Term Care Insurance has changed dramatically over the years. Twenty years ago, a policy would just cover assisted living or nursing home expenses.
the average cost of custodial care, having someone come into the home to help get someone out of bed, showered, dressed, with a little meal prep and housekeeping is $20 per hour. If you need 4-5 hours/ day you are looking at around $25,000 per year. Assisted Living is $42,000 per year, and $84,000 per year in a Nursing Home. The average need for long term care is 2 years and 8 months. As you can see, those expenses will eat through your retirement savings quickly. You maintain homeowners insurance in the unlikely chance that your house burns down or blows away because it’s a major asset that could be devastating if you don’t protect it. Long Term Care expenses can be devastating too. Many people don’t think about long-term care until the need is upon them. I frequently hear folks say that they plan to have their spouse take care of them as they become frail. Think about it. If he is over 200 lbs, do you think the 150 lb wife that is in her 80’s is going to be able to lift him out of bed and help him to the shower? Some assume that their kids will take care of them. Do you have kids spread out across the country? Do you expect them to move back or to give up their jobs to take care of you? Do they have small kids of their own? Life is hectic and I frequently hear people say that they are afraid of the expense. There is some degree of denial to this but the statistics are frightening. Spend it now, or spend a lot more later.
By Rebecca Nordquist, RD, MHA, CLTC
A few weeks ago, I received a call from a friend of mine. She said that she and her husband were having a difficult discussion. “What will happen when we get old?” She said that they “didn’t want their kids to have to take care of them so they wanted to know about Long Term Care Insurance”. The couple had experience with their parents, watched them age, one had parents that had it and are using it in the nursing home and are so thankful that their parents had the foresight to buy it. This couple, in their fifties, have the right idea. Plan ahead, it’s less expensive and you are probably healthier. The month of November is Long Term Care Awareness Month so what a great time to consider it. Think about these statistics, 70% of seniors over the age of 65 will need some type of long term care. Over 42% of those will need nursing home care and the costs are staggering. In Nebraska,
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