Long Term Care Insurance | Cooper Elder Law

Category Archives: Long Term Care Insurance

If you think Long Term Care is expensive in Ohio…

Written on July 13, 2010 by Thom Cooper in Estate Planning, Insurance, Long Term Care Insurance

by Attorney Thom L. Cooper

The monthly average cost a long term care stay in Ohio is $6,023 per month according to the Ohio Department of Job and Family Services. That works out to $72,276 per year. However if you want to see where we might be headed, let’s look at the cost of some of our trend setting states nearby. According to a recent Genworth Financial Survey. A semi-private room will set you back $100,923 in New Jersey, $110,980 in New York, and $126,108 in Connecticut. Want a private room, add about 10 percent. And…if you think that is high, Alaska, may be a nice place to visit but don’t have a medical emergency there and go into a nursing home since a semi-private room there will deplete your savings at the rate of $218,453 per year!

How much is your home worth?
How long to go through it with a long term care stay?
Who can afford this?

And…to make it worse. If you go into a nursing home, or receive in home medical benefits, in Ohio and the State helps pay the bill they will put a liens on your home for these costs. It is no wonder that people are desperately worried about this problem.

There are things that can be done to protect your home…but you must act now since there are time limits which must run to fully protect your home. But….these time limits don’t start until you act!!

For help…

…but please act now.

Your home and assets are at stake.

For a copy of the Genworth study see:

http://www.genworth.com/content/products/long_term_care/long_term_care/cost_of_care.html

Increases 2010 LTC Deduction Limits

Written on December 14, 2009 by Thom Cooper in Long Term Care Insurance

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Want to Deduct Long-Term Care Insurance Premiums: IRS Increases 2010 Limits

If you are paying for long term care insurance, then you know that it’s expensive and usually gets more expensive with age. The IRS is increasing the amount you can deduct with higher deductions for higher ages. If you need assistance with how to use long term care insurance as part of your estate plan, call us or complete the email request.

The 2010 limits are as follows:

Maximum Deduction	Attained Age Before Close of Taxable Year
$330	40 or younger
$620	Older than 40 but not more than 50
$1,230	Older than 50 but not more than 60
$3,290	Older than 60 but not more than 70
$4,110	Older than 70

The maximum non-taxable per diem benefit will be $290 in 2010, up $10 from 2009.

Sources:

Law Office of Donald D. Vanarelli Blog
IRS Revenue Procedure 2008-66, 2009-50
The Corporation for Long-Term Care Certification, Inc.

October is Long Term Care planning month

Written on November 12, 2009 by Thom Cooper in Long Term Care Insurance, Nursing Home Planning, Planning

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The Ohio Department of Insurance urges Ohioans to carefully consider financing and coverage options related to Long Term Care. Below is part of an article that is on the Ohio Department of Insurance website.

October is Long Term Care planning month

Columbus – October is National Long-term Care Planning Month and the Ohio Department of Insurance is encouraging Ohioans to take a careful approach when determining how they will pay for their long-term care and if they should secure long-term insurance.

“Before anyone purchases long-term care insurance, it’s extremely important to consult your family, attorney, tax advisor and review many factors, including your future ability to pay premiums and your family’s commitment to tend to your health care needs in the future,” said Mary Jo Hudson, Director of the Ohio Department of Insurance. “Long-term care insurance can be expensive and needs to be a carefully considered purchase.”

Long-term care insurance can help pay for medical care given in a nursing home, assisted living facility, adult day care center or our own home. It can also pay the expenses related to skilled care and treating sudden or ongoing health problems. Long term care policy terms vary, so it’s important to review them carefully before purchase.

The Department’s Ohio Senior Health Insurance Information Program (OSHIIP) provides unbiased and free information and long-term care insurance coverage. Ohioan can call OSHIIP at 1-800-686-1578 with questions and are urged to utilize the Department’s Shopper’s Guide to Long-term Care Insurance, available at www.insurance.ohio.gov. You can also request that the guide be mailed to you.

We would like to encourage anyone who is considering the purchase of Long-term care insurance to visit the website noted above or call and request free information.

Even Superwoman Needs Long Term Care Protection

Written on October 21, 2009 by Thom Cooper in Long Term Care Insurance, Nursing Home Planning, Planning

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Sometimes, I think my mother might be a superhero. At 58, she takes on several roles. From 7:30 a.m. until 5:30 p.m. Monday thru Friday she is not only a grandma, she is also the daycare provider for any where from one to three grandkids ranging from one year old to five years old. From 7:30 a.m. until 9:30 p.m. she is not just a daughter, but also the “on call” caregiver for my 81 year old grandmother who resides at “The Barrington of Fort Thomas”, an Assisted Living facility just minutes away from her home. Sometimes out of necessity, she manages to be the sitter for three grandkids and the sitter for my grandmother simultaneously. She does all this while taking on the normal jobs (mediator, housekeeper, guidance counselor, cook, event planner, etc.) that go with being a parent of three young adult families, and the wife of a working husband.

As hectic as her life seems to be, I have realized that it is not all that unique. I’ve seen several of my clients come to their appointments with grandbabies in their arms. In many more instances, my clients are asking to meet at later hours because between 9 and 5 they are the babysitter for grandkids, or they spend the majority of their daytime hours taking their own parents to doctors and spend their daytime hours at their elderly parents’ sides, especially after the death of their spouse. While my clients typically only have to worry about being the caretaker of either their parents, or their children, or their grandchildren, there are a handful, like my mother, who are “sandwiched” in between doing a job they have looked forward to their entire lives, and one they have dreaded as they watched their parents age.

What makes things easier for my mother is the fact that my grandparents had the foresight to purchase long term care insurance when they were able back in the 90’s. In this instance, the long term care insurance has paid off in several different ways. When my mother can’t be with her own mother, she knows that she is getting great care at a top-notch assisted living facility. As my Grandmother has slowly declined and needs more assistance than ever before, my Mother has been able to fall back on this insurance to provide additional care as well. Because the long term care insurance covers such a significant amount of the Barrington’s bill, mom is also able to pay additional caregivers to be by my grandmother’s side when needed, keeping her out of the Nursing Home for as long as possible.

My grandparent’s plan led them to purchase long term care insurance. That purchase has had a positive affect on four generations: Grandma is getting great care as she ages, my mother can rest assured of it (and all though we all worry about aging parents, it help her to maintain her sanity), my brother and I are getting the best (and cheapest) daycare for our kids, and our kids get to have as many popsicles and cookies as they can eat.

Long term care insurance, when available, can be a great option. However, it’s important to understand that it is not the only option. When getting your “Ducks in a Row”, don’t forget that you need to account for more than just the typical estate “death planning”… make your life a priority and get schooled on the options available to you regarding long term care. Schedule time with your advisors to research whether long term care insurance is a viable option—and if its not, see an Elder law attorney about other ideas that might work for you and/or your spouse. Getting educated is the first step towards getting your Ducks in A Row. Find out how by attending one of our seminars.

In-Home or Nursing Home Care: How will you pay?

Written on August 17, 2009 by Thom Cooper in Long Term Care Insurance, Planning

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by guest Roy Whited

I have found that most people are concerned about how to pay for the costs of a long term nursing home stay or a home health care situation care as they age. Many seniors that I have talked with about long term care insurance seem to fall in to one of four categories:

Like it, but can’t afford it: There are those who like the idea of having long term care insurance to help pay for the cost of a long term nursing home stay or perhaps a home health care situation, but they simply cannot afford the cost of the premium. The older they get, the higher the cost of the insurance becomes. All is not lost, however. With the help of a knowledgeable elder law attorney, there are ways to protect their assets, with out buying insurance.

Like it, but can’t qualify: Then there are those who like the idea of long term care insurance and can afford to pay for it, but their diabetes or Parkinson’s or other chronic health condition disqualifies them. I found that these folks could benefit greatly by working with an elder law attorney to take actions that will preserve and protect their assets.

Already have some, but not enough: Some have already purchased long term care while they were young enough and had enough income to purchase it at low cost. For these folks, we look at their long term care insurance as the first line of defense to protect their assets from costs related to a long term nursing home stay or a home health care situation. Even with long term care insurance, they can benefit from the counsel of a qualified elder law attorney to help coordinate their benefits.

Don’t like the idea, or don’t want to pay for it: For those who don’t necessarily like the idea of insurance, or simply don’t want to pay for the cost of insurance, it is more important than ever to learn how to protect their assets from the cost of the nursing home or home health care without purchasing insurance and the sooner, the better.

The moral of the story: Seek professional advice to make the best choice for you and your family. Learn more now by attending a free seminar. Click here to get more information about the free, informational seminars in your area.

Should You Buy Long Term Care Insurance?

Written on July 1, 2009 by Thom Cooper in Long Term Care Insurance, Planning

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by guest Roy Whited

Only you can decide if Long Term Care insurance is right for you. Your decision should depend on your personal health and wealth. Do your homework. Get a realistic idea of what you need and how much you can afford to pay. Make sure you can pay the premiums and still have enough money for basic needs such as housing, food, medicines, etc. Ask a trusted friend or relative to join you when analyzing your needs with a qualified insurance professional who can review the policy to see what you may have missed. Shop around, long-term care policies can have big differences in price and benefits.

What does Long Term Care Cost* in Ohio?

Care Provided	Annual Cost
Nursing Home, Private Room	$67,058
Nursing Home, Semi-Private Room	$60,251
Assisted Living, Private One-Bedroom	$29,738
At Home, with a Licenced Medicare-certified Home Health Aide – 50 hours/week	$51,714
At Home, with Homemaker Services – 50 hours/week	$44,122

How long are you likely to need it?

The average stay in a nursing home is 2.5 years. The average length of time for informal or custodial care in the home is 4.3 years.

When does Long Term Care Insurance make sense?

If your total financial assets are at least $75,000, not including your home or your car

If you will have annual retirement income of at least $25,000 to $35,000 for an individual of $35,000 to $50,000 for a couple

If you are able to pay premiums without financial difficulty. While premiums are designed to remain level based on your age at the time you buy, think about whether you would be able to afford premiums if there should be an increase in the future and;

If one of your major financial goals is to leave an inheritance to your children, grandchildren or other heirs.

Some people buy long-term care insurance for reasons other than to protect income or assets. They also buy for peace of mind, greater independence, greater ability to receive care at home, and greater choice of care options.

Remember if you can’t afford long-term care insurance, or for health reasons you can’t qualify for the insurance, consult an experience elderlaw attorney who can tell you about other options to pay for long term care and to preserve your wealth.

Sources: the Ohio Department of Insurance
“Own Your Future Planning Kit for Long Term Care: 2007 Cost of Care Survey”, Genworth Financial, March 2007