Long Term-Care

Long Term Care Expenses

Most people are completely unprepared to pay for any costs associated with “care-giving” because it never occurred to them that at some point in the future they may very, well need help as they age.

And unfortunately if you haven’t purchased a LTC policy by the time you are in your 50’s, the premium will be very expensive later on, especially if you have developed some health issues and qualifying for the insurance will now be difficult and or too expensive to obtain.

Everyday a senior experiences either a fall, a stroke or a medical procedure that will require nursing and help of some sort within the home and  since few people have purchased Long Term Care Insurance, they and their family will find themselves in a crisis to come up with a solution.

If the senior has a substantial amount of money they have saved over the years, they could use it to pay for their care but if they don’t then maybe it will be the adult children who will have to use their own funds to cover the expenses associated with hiring a service to take care of the family member who needs it.

And a very frightening fact is that 70% of those who are 65 or older will have some sort of situation happen where they are going to need help and they won’t have any way to pay for it.

Typically it becomes the responsibility of a family member and the burden of that responsibility is extremely difficult as it up ends the family dynamic, the caregiver is unqualified to care for the parent and their own life becomes overwhelmed and in some cases, they develop serious health issues of their own due to the ongoing stress of being a caregiver.

An excellent option for the entire family is to use funds from a Reverse loan to pay the costs, plus any cash reserves the senior and their family may have, will be protected from being drawn down and the real fear of running out of money is eliminated.

I have found that more Financial Advisors are suggesting this alternative to their clients and families in lieu of drawing down on their investments and possibly experiencing tax consequences and it is an excellent solution to use to pay for the care-giving expenses and removes the fear and stress a family is experiencing when they don’t have the funds to pay for the services that are needed for the family member.

Funds from a Reverse loan is an excellent option to consider to cover these costs and relieve the worry and burden the senior and their family.

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Financial Advisor Magazine

Financial Advisor Magazine recently published an article discussing the serious need for Long Term Care Insurance for our aging population.    However, many people have missed the window of opportunity to purchase it and now due to possible health problems, they are not necessarily a qualified candidate for the insurance.

And many people don’t know that Medicare will not pay for any long term care events.    And often it falls to a family member to become the caregiver of their parent, which is very stressful for the entire family, as it disrupts their own lives and frequently they have to use their own money to pay for any expenses for their parent.

Personally, I purchased mine quite some time ago and it certainly gives me the peace of mind knowing that I have it in the event, some time in the future I become unable to care for myself or if I am disabled.    Of course, that’s not my plan as I age, but it is a very serious possibility for many people.

One solution that was presented, was to use funds from a Reverse loan to either self-insure yourself or if you do qualify for the insurance but can’t afford it, use money from a Reverse loan to pay the premiums.

Here is a shorter version of the article that I will place into, two posts.

Financial Advisors: Reverse Mortgages Provide Alternative to LTC Insurance
Posted ByCassandra DowellOn July 7, 2015 @ 3:35 pm In News,Reverse Mortgage

“As America’s aging population continues to grow, the need for advanced senior care planning becomes increasingly dire.

Yet long-term care insurance isn’t always an option for todays aging Americans, says Financial Advisor Magazine in a recent article. In those instances, advisors should consider recommending a reverse mortgage, taken as a line of credit.

“Clients over age 60 may have missed the window to purchase affordable long-term care insurance,” notes FA magazine, adding that each year after age 60 premiums become “extraordinarily high” and it becomes less likely for the applicant to medically qualify.

When long-term care insurance isn’t an option, advisors should consider recommending a standby Home Equity Conversion Mortgage (HECM) line of credit, FA Magazine suggests, explaining that borrowers are not required to pay monthly loan payments as long as they live in the home as their primary residence and continue to pay taxes, insurance and home maintenance.”

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Reverse Mortgages for Long-Term Care

The following article was written last September, but is certainly still relevant  now as it was then, drawing attention to the pending crisis on how to pay for long-term-care as the population ages.

10,000 Boomers are turning 62 each day and most of them won’t have enough savings to pay for any medical crisis that could occur as they age and most of them have not purchased Long Term Care insurance.

Federal and state governments are concerned about the financial impact that will effect programs, many of which have already been discontinued due to lack of funding and the families of seniors.

Here is the first part of the article and I will share the rest of it in two more posts.

Committee Touts Reverse Mortgages Among Solutions to LTC Crisis
Posted By Alyssa Gerace On September 18, 2013 @ 6:14 pm In Reverse Mortgage
“The federally-appointed Commission on Long-Term Care included reverse mortgages as a way to fund long-term services and supports among other recommendations to Congress on how to address the needs of the aging population.

On Wednesday, the committee submitted the final report to Congress following a Sept. 12 vote in favor of its recommendations, which are meant to renew national discussion regarding how to address the issues and challenges of the aging American population. The vision is to create “a more responsive, integrated, person-centered, and fiscally sustainable LTSS delivery system that ensures people can access quality services in settings they choose.”

Currently, the federal and state governments pay for 62% of paid LTSS, amounting to more than $130 billion a year, the Commission’s report says.”

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Long-Term Care and the Future

I am providing a copy of an article that discusses the Commission on Long-Term Care and a report that they are preparing for Congress that will identify the areas of concern as people age.   How this will effect their quality of life, finances and family and how the nation needs to be prepared to meet the needs of an aging population.

AARP Stresses In-Home Options to Long-Term Care Commission
Posted By Elizabeth Ecker On August 6, 2013 @ 6:27 pm In News,Reverse Mortgage | 1 Comment

“Aging in place will be a critical component of long term care, AARP said in a statement to the Commission on Long-Term Care following a hearing of the commission last week.

Currently, the commission is working on a report to Congress that will lay plans for Long Term Care legislation, of which home care should be a component, AARP said.

“The Commission has a little over a month to vote on recommendations and the three hearings to date highlight the importance of expanding consumer choice of quality care options, increasing access to home and community-based services that would allow more people to stay in their homes and communities, and bolstering support for family caregivers,” said AARP Executive Vice President Nancy LeaMond.

AARP urged swift movement by the commission, with pressing long term care challenges facing the nation in its current state.

AARP hopes the Commission will use the short time it has left to offer real guidance to Congress on addressing the many challenges surrounding long-term care,” LeaMond said. “This is an opportunity to jump-start a national conversation that brings individuals, families, policymakers, businesses and other LTSS stakeholders together to pursue real change.”’

Written by Elizabeth Ecker [1]

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