THE AGENTS PAGE

Frequently Asked Questions (FAQ)

WHAT IS LONG-TERM CARE?

Long-term care is the everyday help that you could need if you suffer a prolonged chronic illness or disability, and you cannot care for yourself. Even if you never require lengthy care in a nursing facility, you may some day require either part time or full time help in your home with activities of daily living (ADL) such as dressing, eating, bathing or walking. There are many kinds of long-term care services in addition to care needed for lengthy stays in a nursing facility. These other services can include:

HOME HEALTH CARE (PART OF FULL TIME) CUSTODIAL CARE HOMEMAKER SERVICES PERSONAL CARE LIVE-IN COMPANION CAREGIVER TRAINING BENEFIT HOSPICE SERVICES RESIDENTIAL CARE FACILITY ADULT DAY CARE RESPITE CARE (WHICH HELPS FAMILY MEMBERS COPE WITH THE CARING OF OLDER PERSONS AT HOME). CARE RENDERED IN SENIOR CITIZEN OR CONGREGATE LIVING FACILITIES.

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WHAT TYPES OF LONG-TERM CARE POLICIES ARE AVAILABLE?

In California, there are three to choose from:

1. Home Health care only plan. 2. Nursing Facility and Residential care plan only. 3. Comprehensive Long-Term care plan (includes #1 & 2).

California's long-term care plans are the best of all the states, due to the passage of several pieces of legislation during the past 7 years, especially Calif. Senate Bill SB 1943.

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WHEN IS THE BEST TIME TO PURCHASE LONG-TERM CARE?

The ideal time is from ages 40 to 65. The younger the age, the lower the premium. At younger ages, you are less likely to have health problems. At these younger ages, the cost is quite affordable.

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AT WHAT AGES ARE THESE PLANS AVAILABLE?

Depending on the carrier selected, long-term care plans are available from ages 20 to 99 years.

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WHO SHOULD I SELECT TO ADVISE ME ON LONG-TERM CARE INSURANCE?

Only a limited number of agents and brokers are licensed to sell long-term care plans. If possible select an agent who has marketed this product for a number of years. Select an agent who represents several long-term care companies, because a "captive agent" who represents only one carrier will not have the range and choices of plans that best fit your particular requirements, including cost comparison, insurability, strength of company, etc..

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HOW DOES MEDICARE RELATE TO LONG-TERM CARE?

Contrary to what 70% of Seniors believe, neither Medicare or private Medicare supplement insurance will pay for most long-term care expenses. Medicare was designed to provide for acute care and not for long-term or chronic care. Medicare performed only by or under the supervision of skilled medical personnel and under a doctor's orders. It must be performed in a Medicare approved skilled nursing facility. However, not all skilled care is approved by Medicare, in fact, out of an estimated 80 billion of LTC costs, Medicare paid less than 5% of this total. Medicare does not cover intermediate or custodial care or for prolonged home health care.

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WHAT ARE YOUR CHANCES OF NEEDING LONG-TERM CARE?

With the "Graying" of America continuing at an accelerated pace, an estimated 35 million people in our nation are over 65 (this is 14% if iur population). By the year 2030, 70 million will be over 65. This will be 21.2% of our population. By the year 2030, 8.6 million people will be over the age of 85! Within any 12 month period, about 8.5 million Americans will require some form of long-term care. Right now, 22% of this age group are residing in nursing homes. Depending on age, the lifetime risk of entering a nursing home is between 20% and 50%.

About 50% of nursing home admissions follow a three day or longer hospital stay. More than half stay 90 days or less, however, 40% will stay an average of 2-1/2 years. Only a small percentage stay five years or more.

By spending a small, percentage of your annual income each year, an insurance company can assume the risk of possible economic loss resulting from long-term confinement. LONG-term care is the hidden threat to family assets!

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HOW EXPENSIVE IS LONG-TERM CARE?

Confinement in a long-term facility can be quite costly. It presently ranges from $30,000 to $60,000 per year depending on where you live. The very high quality facilities can cost as much as $60,000 per year. Home care on an unskilled basis can average from $40 to $120 per day depending on whether it is part or full time, while skilled care visits can amount to much more. Private home care insurance is available to help cover this type of care. And, as we know, everyone would prefer to be cared for in the familiar surrounding of their own home rather than leave their home for confinement in a nursing facility.

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WHO PAYS THE BILLS FOR LONG-TERM CARE?

At least 45% of nursing home bills are paid for by the private sector, usually the patient or relatives. Medicaid pays approximately 50%. Private insurance plans pay an estimated 3%. Other government programs pay 4% while Medicare pays less than 3%.