Real Life Stories

Bill and Janet

Bill and Janet have been married for 34 years.  They are still very much in love, but Bill can’t recall much about his life.  He was diagnosed at 60 years old with the early stages of Alzheimer’s disease.  For the last six years there has been a constant schedule of custodial care and someone monitoring Bill’s needs.  Luckily, Bill’s corporation included a long-term care policy in his executive carve out program that provides a monthly check in the mail to cover the expenses of Bill’s care.  His wife, Janet, has help in providing a safe place for Bill to live, and has the freedom to go shopping or spend time going out to dinner with friends.  Janet loves to dance, and once in a while Bill can still lead.  But she wonders what life would have been like if she did not have the care support and financial security provided by their long-term care insurance policy. 

Becky and her mother, Sylvia

Becky is an only child, single, and works very hard to have a home and financial security.  She and her mother didn’t get along well, and sometimes she wondered what would happen if her mom ever needed care.  Would she move to the town where her mom lives, or would her mom have to move to where Becky lives?  And how would she be able to handle the potential care needs and keep her job?  Even though Becky had heard of long-term care insurance, in the back of her mind, she didn’t think her mom would linger very long.  Her mom was a heavy smoker, and she figured she would most likely not have a long illness.  Unfortunately, Sylvia was diagnosed with lung cancer, and needed nursing home care.  She paid $6,000/month out of her own assets and Becky felt terribly guilty because she was unable to care for her mom at home.  Even in spite of her serious illness, she remained in the care facility for about 18 months. (That’s over $108,000) 

Sally and her dad, John

Sally and her father, John, attended an educational workshop on long-term care planning, and were very interested in getting a plan for Sally.  They both had just spent the previous 14 months caring for Sally’s mom at home, and knew first had how difficult it is to provide quality care and have access to the best professionals.  The problem is that Sally has Lupus, a chronic illness that makes her uninsurable for traditional long-term care insurance.  Since Sally is the only heir to a sizeable estate after her father passes, John was concerned about protecting his legacy and also making sure his daughter was properly taken care of should there be a change in her health.  Since traditional insurance was not an option, Sally and her dad decided on a combination plan—an annuity combined with a high deductible long-term care insurance policy.  They were able to have some coverage just in case the worst happens, and were able to quantify their risk so other planning decisions could be made.  The plan provided peace of mind for both of them, and was an affordable way to get some protection that would otherwise not be available. 

Those who have experienced the need for long-term care or assisted a loved one who needed long term care will have a much better understanding of the disastrous implications of not planning ahead. Many families have seen their loved ones placed in nursing homes, and know first hand the financial implications when applying for Medicaid. 

Whether or not you have had first hand experience, here are some questions that need to be answered. 

1. When you need Long Term Care, would you rather stay at home or go to a care facility?
2. Who will care for you when you need assistance down the road? Your spouse, your children?
3. If your children will take care of you, will one of them have to quit their job in order to take care of you full time?
4. Are you able to afford $50,000 to $60,000 per year for nursing home or home health care costs? What about 10 years from now when the cost is much higher?

Many people who have already purchased long-term care insurance will tell you that one or more of the following reasons are important to them: 

1. They do not want to be a burden on their family members.
2. They want access to quality care in the appropriate setting.
3. They don’t want to depend on the government to provide care. (Medicaid)
4. They want to preserve and protect their assets for future generations.
5. They want to maintain control and independence regarding their care.
6. They want peace of mind when it comes to Long Term Care. They want to know that they are protected when the time comes.

Which reason is most important to you?