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Long-Term Care Part 1 of 3…


There is a vital discovery that should be made. Unfortunately, many don’t make the discovery until it’s too late.

The discovery comes when you find yourself, your spouse, or a parent in a long-term care facility, and the costs of that care begin to erode the money and assets you, or they have accumulated.

As you, and they watch money begin to disappear, the panic sets in as you wonder what can be done to stop the money draining from those accounts.

Having long-term care insurance in your portfolio is way to pay for some, or all of the costs that could be incurred for care.

Long-term care can be expensive. It can completely erode someone’s savings and retirement in a very short period of time.

Rather than thinking of this type of care as long-term care, as it is normally known, think about it as “asset care”. In other words, long-term care is a way for you to protect your assets.

November is Long-Term Care Awareness Month.

Even Congress has urged “the people of the United States to recognize (this) as an opportunity to learn more about the potential risks and costs … and the options available.”

In 2014, the cost for a long-term care private room was over $87,000 per year. In 10 years with inflation, that number could grow to over $123,000 per year in costs. In 20 years that number could be over $170,000 per year.

According to the National Long-Term Care Clearinghouse, about 70% of individuals over the age of 65 will require at least some type of long-term care service during their lifetime.

Alzheimer’s alone can average 8 years of care. In 20 years with inflation that’s $174,000 per year, totaling close to $1,400,000.

There are trends that are affecting the costs of long-term care:

BABY BOOMERS – There are over 70 million baby boomers. There is a potential for an influx of the number of people that will be needing care at the same time. More demand usually means you pay a higher price.

MEDICAL TECHNOLOGY – Life expectancy has increased, and will likely continue to increase. People are living longer. Costs could not only increase, but the costs could last longer as people live longer and need more care.

FAMILY DYNAMICS – Who in your family will actually provide the care and financing for your loved ones? Will it fall solely on your shoulders?

GOVERNMENT – Can the government continue to provide care in the future? What programs will be available? Who will qualify?

Many people will have assets in retirement: cash, qualified plans, life insurance, real estate, annuities, pensions, a business, etc. Some, or all of these assets could be whittled away to nothing to pay for the cost of long-term care.

For those wanting to leave a legacy to children or grandchildren, that legacy could also be diminished by the costs of long-term care.

The first step is in your hands. Continue to get the information you need to make an informed decision and discover how asset care can protect your assets.

Over the next few weeks, we’ll look into the consequences of not having long-term care, and the solutions to this expanding issue of “asset care” and what you can do to protect your assets and protect those you love from incurring expenses themselves.




Barry Brooksby