Michael Coppola - Long Term Care

Michael R. Coppola Jr., CLU

Long Term Care
A Retirement Crisis

Not planning for potential Long Term Care needs could deplete hard earned savings and threaten a family's future. Many people fail to realize that rapid increases in Long Term Care expenditures projected for the 21st century have serious implications for their retirement security. Some individuals could spend one third of their lives in retirement. Looking into the future, there are two key goals of retirement security: First, saving enough money for retirement and second, protecting against life's uncertainties, including the uncertainty associated with future Long Term Care costs.

What is Long Term Care?

Care outside of a hospital, either in a nursing home or your own home, expected to last at least 90 days. It consists of many different services aimed at helping people with chronic conditions. Those who need help at home with everyday activities may rely on personal assistance services or a homemaker. Care in the community includes adult daycare services and assisted living facilities.

Long Term Health Care is the fastest growing insurance product in the country. Individuals and businesses alike are realizing that they and their assets may not be protected.

Who Pays for the Care:

MEDICARE:
Medicare eligibility is extremely restrictive. Medicare was designed to pay for three basic types of services: Hospitalization, Medical Expenses, and Post Hospital Skilled Nursing Care. The majority of Long Term Care patients receive intermediate or custodial care. Medicare accounts for 8.0% of the total cost of Long Term Care.

MEDICAID:
Medicaid was intended as a safety net for the poor. In order to become eligible all assets must be depleted. Attempting to transfer assets to others in order to become "artificially impoverished" is coming to an end with estate recovery becoming mandatory. And qualified individuals rarely have a choice of where to stay since not all nursing homes accept Medicaid. However, Medicaid does pay for 46% of the costs of nursing home care.

PERSONAL ASSETS:
Paying from assets accounts for 43% of the costs.

PRIVATE SOURCES:
Private sources, such as insurance, pay 3% of the costs.

Who is a good candidate:

The target age is between 49 and 84.
Good health increases chances of obtaining coverage.
People with assets to protect.
Those with family members who live too far away to provide regular care.
People in the "sandwich generation" who want to protect against covering college expenses for their children and Long Term Care expenses for their parents.
People who may lack family support to keep them if they become disabled.

Tax Benefits:

Individuals are able to add long-term care premiums to regular medical expenses as allowed by the treasury department. Benefits are received tax free.
Long Term Care insurance, like other insurance, is intended to spread the risk across many individuals and thus lower costs to any one individual in the event he or she needs Long Term Care services.

While some researchers suggest that medical breakthroughs will reduce the incidents of disability, others maintain that rising life expectancy may well increase the likelihood of developing age related disabilities, such as Alzheimer's Disease.

Call:
330-865-4219
Email:
Mike Coppola

Facts you should know:

Chances of incurring property loss or liability for bodily injury in the home are one in 88.
Chances of having an auto accident are one in 47.

Chances of needing long-term health care are more than two in five.

We offer complimentary information and seminars to help you be better educated about Medicare and Long Term Care.
Click here to learn more.

Interesting Statistics:

At age 65 and over, one out of two women and one out of three men will spend time in a nursing home.
Just one year in a nursing home can cost between $40,000 and $80,000.

Telephone 330-865-4219 FAX 330-864-8661 Postal address 2857 Riviera Drive Akron, Ohio 44333
Electronic mail General Information: mCoppola@brunswickcompanies.com
Licensed in the State of Ohio