Planning for your future health care needs is an important part of being a faithful steward.

Evaluating Your Need for Long-Term Care

by Norma Jackson Goldman

When you woke up this morning, you likely climbed out of bed, walked to your bathroom, took a bath or shower, dressed, and ate breakfast. These are called ADLs—the activities of daily living. If you’re feeling great and your general health seems fine, you may wonder why you would even think about long-term care. If so, consider these facts:

• An estimated 12.1 million Americans need assistance to carry out everyday activities.
  

• After age 65, Americans have more than a 70% chance of needing some form of long-term care (LTC).
  

• Americans are living longer due to advances in medicine and changes in life-style—healthier diets and exercise.
  

• The over-65 population will double by 2050.
  

• The over-85 group represents the fastest growing segment of the population (we didn’t live that long in years past).
  

• Annual nursing home costs range from $40 to $100,000, depending on the state in which you live.
  

• Home health care costs depend on the number/hours of visits per month, and range from $22 to $96,000 annually.

Changes in families impact this issue as well. In the past, families took care of aging relatives who lived close by or even under the same roof. Today, potential caregivers are in the workforce, and many children of aging parents live far away. These factors contribute to the need for costly outside caregiving resources.

Long term care insurance (LTCI) can help cover the cost of care you receive at home from nurses’ aides, home health aides and therapists. It can also help cover services in an assisted living facility, and if you require skilled care, nursing home expenses can also be covered. These medical and support services are primarily for people who suffer from (1) degenerative conditions (such as Parkinson’s disease or stroke), (2) prolonged illnesses (such as cancer) or (3) cognitive disorders (Alzheimer’s and dementia).

Having adequate LTCI can help you maintain your dignity and financial freedom and give you and your family the flexibility to make choices: what services you receive, where you receive them, and who provides them.

The first step in determining future needs is to realistically assess your general health and lifestyle and confirm your conclusions with your physician. Truthfully evaluate your eating habits, exercise program, positive mental outlook, and family history.

Second, find a trustworthy professional who can walk you through the four potential ways of paying for LTC: cash, Medicare, Medicaid and private insurance.

Work with a knowledgeable professional who has access to policies from more than one insurer or at least comparison shop. Rates for similar coverage varies greatly—as much as $700/year. Ask these critical questions:

• How long has the company provided long-term care coverage?
  

• Does the company have financial strength?
  

• How often have premiums increased in the past ten years?
  

• Are discounted rates available for those in excellent health?
  

• Does the policy offer options (home care, assisted living, and skilled care)?
  

• What is the process for paying claims? What percentage of claims filed are actually paid?
  

• Does the insurer offer inflation protection? For example, a $130/day nursing home cost will increase to $260/day in 14 years, assuming an inflation rate of 5%.
  

What is the benefit of obtaining insurance now rather than later? Premiums increase as you get older—as in life insurance—and health conditions can change quickly and unexpectedly.

Planning for your future health care needs is an important part of being a faithful steward. Planning not only demonstrates care for your family but a proper reverence for your health and mental state and provides peace of mind for all who will be impacted by your decisions.

About the Writer: Former magazine editor Norma J. Goldman enjoys a successful freelance writing career in her retirement. Learn more about the Board of Retirement at www.boardofretirement.com.