November Is Long Term Care Awareness Month

November is Long Term Care Awareness Month... a continuing effort to raise public awareness regarding the importance of long term care planning. Please take some time this month to learn more about long term care and planning options for you and your family. You can start here...

What is Long Term Care?

Long term care includes a range of services to assist you when you suffer from a chronic or prolonged illness or disability (Alzheimer's, Parkinson's, stroke, cancer, accidents and much more) that leaves you unable to care for yourself for an extended period of time.

It is not just medical care, but is considered custodial care - care that is generally needed when you are unable to perform certain 'Activities of Daily Living' - bathing, eating, walking, getting dressed, etc. Services may be provided in nursing homes, assisted living facilities or a patient's own home.

Who needs it?

The need for such services may come at any age - even younger people may need such care if faced with a debilitating disease or accident. (Current estimates are that 40% of those receiving long term care services are between the ages of 18 and 64.) However, the majority of these services are provided for those aged 65 or older, with the need rising significantly for people age 85 and older.

And, since women generally live longer, women are 50% more likely to require long term care services than men (three quarters of assisted living residents are women, and women account for more than two-thirds of the long term care benefits currently being paid out.)

What are the costs?

The costs will vary depending on several factors including, the type of care needed, how care is delivered (nursing home, assisted living, at home) and location (more expensive in major metropolitan areas.)

The MetLife Mature Market Institute conducts an annual survey of long term care costs in the U.S. and estimates that in 2009, the national average rate for a private room in a nursing home was $219 per day (or $79,935 annually.)

For an assisted living community, the national average rate was $3,131 per month (or $37,572 annually.) And for home care services provided by home health aides from licensed agencies, the national average hourly rate was $21.

How to pay for it?

Generally, health insurance, Medicare and Medicaid do not cover long term care costs. (Medicare pays for some short term nursing home care and Medicaid covers nursing home costs for lower income people.)

Long term happinesslifetime.com care insurance has emerged in recent years as a way to offset the rising cost of care. Several insurance companies offer the coverage for individuals directly as well as through employer group plans.

As the industry has evolved, greater consumer protection standards have been implemented and the insurance policies offer a wider range of benefits and options. However, there are eligibility requirements (relatively good health) as well as benefit limits (maximum dollar amount or days covered) and no policy will cover 100% of your costs.

The cost of insurance - the premiums you pay - will be based on a number of factors including your age, health, benefit amount, elimination period, inflation protection options and potential discounts.

There may be some tax deductibility for the insurance premiums you pay as an individual (if you itemize deductions) to the extent that the premiums paid exceed 7.5% of adjusted gross income.

The self- employed may be able to deduct 100% of premiums they pay and businesses (C and S corps) may be able to deduct 100% of premiums paid on behalf of employees as a business expense.

Many states also offer tax incentives (credits/deductions) to encourage the purchase of insurance.

Please consult with your tax advisor regarding tax implications for your specific situation.

Additionally, some life insurance policies and annuity contracts offer long term care benefit riders.

As with any other insurance, you want to consider the purchase of long term happinesslifetime.com care insurance as a potential option before you actually need it.

Long term care planning for you and your family is an important strategy for protecting your financial future. Regardless of whether or not insurance is utilized, the out-of-pocket costs for care can be a heavy financial burden.

There are many factors to carefully consider in your planning and many resources are available to help you in your decision-making process. For more information on Federal and state resources visit the longtermcare.gov website.

Taren Coleman is the founder of Coleman Financial Group. She specializes in retirement income planning and is dedicated to helping you Build Confidence in Your Financial Future. For more information visit colemanfinancialgroup.com colemanfinancialgroup.com

Coleman Financial Group is a Registered Investment Advisor. Securities offered through H. Beck, Inc. Member FINRA/SIPC. H.Beck, Inc. and Coleman Financial Group are not affiliated.