What types of assistance are used?
● Help to get around and with eating, dressing, bathing, going to the toilet, or transferring say from a bed to a chair.
Note: Professionals who help people refer to these as an individual's critical needs. Details in the insurance plan, describing how the plan works, call these personal functions — Activities of Daily Living (ADLs).
● Individuals who provide personal function assistance, whether Family or professionals, are called Caregivers.
● The need for a Caregiver develops when a person's "parts wore out" or because they are having trouble with mental ability.
● Caregiving is a very common activity today. Over 80% of us have a relative, or know someone, who is now or recently received assistance from a Caregiver.
● 40% of us are now or have been a Caregiver for a family member. 86% of those asked said their lifestyle was impacted!
● 40% of Caregivers are Male.
About 80% in the home:
● Assistance often starts with a family member being the "Caregiver".
BTW - Family caregivers spend an average of 20 hours a week and the impact on them is emotional, physical, and financial!
● When the need for support increases the family may decide to hire a — Homemaker! They provide non medical support and can prepare meals.
Note: These individuals are often called Companions.
● When the level of support increases to needing "hands on" assistance a — Home Health Aide can be hired.
● When the complexity of the needed assistance increases, such as for some medical support, an LPN [like in the picture ] or an RN may come to your home.
● Each person's situation is different so the amount and frequency needed varies! Assistance can be just a few hours every couple days, say to help the family member, or up to around the clock.
Note: Receiving services at home responds to the desire of many people — to age in place.
● A American Association of Long Term Care Insurance study of new long term care claims found 52% started with Home services.
Some think their health won't deteriorate and they will just die one day! It would be nice if it worked that way for everyone!
However, no one knows if they will or won't need assistance! We do know:
● By age 75 — 70% or more of us will need support at some time!
● People 75 and older have 2 or 3 chronic medical related conditions, on average, and some as many as 10 or 12!
Note: When a person has more chronic issues the chance they will need support increases rapidly!
● By age 85 or older 20% are using support services!
● We are lucky today because advanced medical treatments and new medications have increased longevity! But longer life means a much higher chance assistance will be needed and for a longer period.
Bottom line — 80% of people report being worried about having physical limitations!
Adult Day Center:
> Individuals come for the day and receive support so their family Caregiver can go to work. A Big Plus for a Day Center is the interacting with others.
Assisted Living Facility (ALF):
> Individuals have a private apartment and receive meals in a common area.
> Interacting with others often improves a person's quality of life and their health, Socializing is a big value for the family.
> Families state knowing help is there if a fall or sudden illness happens, was a big factor in moving a loved one to a ALF.
> Support for individuals with a complex situation and needing around the clock monitoring.
How much are these facilities used? — The American Association of Long Term Care Insurance, in a study of new Long Term Care insurance claims, found:
> 20% started in Assisted Living
> 28% in a Nursing home.
● A Homemaker coming to your home in the Hartford area averages $22 an hour.
● A certified home health aide who provides say six hours of assistance for four days a week could be about $700. This could grow to over $5,500 a month in say 15 years.
● Adult Day services: Can average $92 a day. Thus, about $2,000 a month on a 5 day a week basis.
● An Assisted Living Facility can cost $6,600 or more a month in the Hartford, New London & Norwich area.
● A semi private Nursing home room in CT has risen in 2021 to $166,400 * a year. The cost for nursing facilities in CT:
> is next to the highest in the U.S.
> has been increasing an average of 5% a year since 1988!
* Reported by the Connecticut Partnership for Long Term Care
BTW — Yet everyone buys home & auto coverage!
● A health care professional (does not have to be a MD ) describes, in what is called a plan of care, the support the person needs and submits it to the Long Term Care insurance company:
> The plan must indicate there is a need for support with two or more ADL's for at least 90 days.
>When the company approves the proposed plan and the waiting period the person selected is completed the first payment is sent to the person. Additional payments can be sent direct to the professional.
● Not all the assistance needed qualifies. Why? Assistance after surgery for example is acute care since it improves a person's ability to (quickly) get around on their own. It's temporary and not on going or custodial.
Everyone hopes they will not need help to "get around" but:
> the chance is very high some assistance will be!
> assistance is expensive today -— costs may be three times higher in 25 years!
What to do? Instead of — being stressed over many years thinking about I might "need assistance" — take action to plan for a change in health.
The First step — Take time to think about what you would like if:
> An accident happens and you need help for a few months or
> Later in life on going assistance is needed.
Note: The change in health page has some points to help with planning.
The Second thing to do — call and we can review how Long Term Care insurance works, the parts, (options) and discuss the benefits you are interested in and how they affect plan costs!
The next step — getting accepted for this special kind of protection is based on a review of medical history. To begin this a preliminary review is done to determine if your health situation means you can apply.
When the preliminary review is satisfactory then — the application step begins. A plan with the coverage you want to happen is created and submitted to the company — even though it will be expensive.
The best way to gain a significantly lower cost — Buy early e.g. taking steps to begin planning today and to buy means !
● Plan cost will be lower since it goes up for each year of age. For example it may be 33% higher if you wait to 55 vs buying at 50!
● Owning a plan means your overall costs will be much lower vs having to pay for assistance yourself !
● You gain the certainty of paying a known amount!
When considering what you want your Long Term Health insurance to do and to control the cost of these options - think about:
● Sharing assistance expenses! This means you gain the advantages of owning a plan at a lower cost by for example:
> Planning to use Social Security income, or other income, or drawing some from investments to pay some assistance costs.
>Then buy a plan which can be used to hire professionals for some of your assistance
● The most expensive option in a Long Term Care insurance plan is inflation protection! Thus, to offset high costs in the future begin the plan with a higher monthly benefit then needed for today BUT don't include inflation protection.
● Paying for your plan annually results in a lower cost (8% ?) than monthly.
Note: Owning a qualified Long Term Care insurance plan provides some tax advantages Not a lot but every little bit helps lower the over all cost for some individuals.
We can talk about your interest & budget and the parts of a Long Term "Health" insurance plan which meet your interest.
I'll get back to you if not available. You can also send a note to - Learn@JohnCParker.agency