A Westchester Family Tradition
Life Planning Center
Sinatra Family of Funeral Homes is constantly looking to provide needed services to families. In response to the many requests, we are pleased to offer a Life Planning Resource Center that advises families on different topics, including different types of Life Insurance and Long-Term Care Insurance, including the highly publicized NYS Partnership for Long-Term Care.
For more info please call 1-800-696-5263 or e-mail us at firstname.lastname@example.org
Life insurance can help protect the family against the financial trauma of an early death. What will help protect the family and their assets if a loved one needs long term care? Typically, the spouse or the adult children become responsible for providing care, either financially, physically or both. It can take a huge toll on the family, their finances, and their lifestyle. Long term care is not only about the person needing the care; it is about the family and those providing for that care.
Long-Term Care Fact Sheet
- What is long - term care? Long - term care is the day-in, day-out assistance you need when you have a serious illness or disability that lasts for a period of time and you are not able to take care of yourself. Long term care refers to a wide range of services delivered in your own home, adult day care centers, assisted living facilities, continuing care communities and in nursing homes. The level of care may be skilled or intermediate, but most frequently is at a custodial or personal level of care. 95% of the people who reside in nursing homes are receiving custodial care. The need for custodial care may be the result of an injury, illness, chronic condition or the frailty of aging where a person requires assistance with activities of daily living (ADL) such as bathing, dressing, feeding, transferring, toileting, or continence.
- What are the chances that you will need long - term care? 70% of people over age 65 will require long - term care at some point in their lives. At age 75 the probability is greater. The older you are, the greater the probability that some form of long - term care will be required. Of those entering nursing homes, half will stay less than three months, many of these requiring care as part of a convalescing process. The average stay of the other half entering nursing homes will be approximately 3 years.
- How much does long - term care cost? The current cost of nurses aides or home health aides ranges from $10 to $27 per hour. Home health care can amount to over $29,000 per year or more. The cost of nursing homes average about $188 per day - that's an annual cost of $68,620. Downstate costs range from $80,000 - $100,000 per year.
- What is the future cost of long - term care? Assuming a 5% inflation rate, the annual cost of a nursing home stay:
in 10 years will amount to $110,076
in 20 years will amount to $180,424
in 30 years will amount to $293,892
In 30 years, assuming an inflation rate of 5%, the average cost of a 5 year nursing home stay will cost a total of $1,469,460.
- Doesn't my Medicare Supplement Policy or my catastrophic policy cover long - term care expenses? Coverage is very limited. After at least a 3 day hospital stay, if continuous skilled care is required in a skilled nursing facility, then Medicare may pay in full up to 20 days and the excess amount after a significant deductible per day up to a maximum of 100 days. Some Medicare supplements will reimburse this daily deductible of Medicare approved expenses in a nursing home. Less than 2% of nursing home income is derived from Medicare and Medicare Supplements. In certain situations, if skilled care is required at home, Medicare may pay. It is estimated that Medicare paid only 11% of home health care costs last year.
- Who pays for long - term care?
Medicare, Medicare Supplements, conventional health policies - 3%
Catastrophic Care Policies - 0%
Medicaid and state programs - 46%
Your savings or Private Health Insurance - 51%
Medicare, Medicare Supplements, & health policies specifically exclude custodial care.
- How does the risk of requiring long - term care at home or in a nursing home compare to other risks I face?
* 1 in 1200 - the chance of a $100,000 loss from a fire or accident in your home
* 1 in 240 - the probability of a $100,000 or greater liability suit arising from an automobile accident
* 1 in 15 - the chance you will encounter major medical health care expenses of $100,000 or more (according to the Health Care Financing Administration)
You probably have coverage for each of the above risks, and well you should. Yet, the probability of encountering significant long - term care expenses is better than 1 in 5, and the greatest risk of all.
- Do you need long - term care insurance? Not everyone needs long - term care insurance. If you have limited assets, then Medicaid and community based programs may effectively meet your long - term care needs. If you do have assets to protect, then you probably would not qualify for Medicaid or community based programs. If you want to maintain your independence, if you want to have the most choices as to where, when, and how care is provided, then long - term care insurance may be your best answer. Financial professionals and legal advisors know the important role that a properly structured long - term care insurance policy fills.
To Understand the New Medicaid Rules please click on this link.