Long-term care planning necessary at early age

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Gail Noggle, principal of Gail Noggle Signature Investment Services, is a Registered Investment Advisor, Financial Advisor and holds Series 7, 65 and 63 licenses as well as life and health insurance and real estate licenses.|ret||ret||tab|

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Dreaming of a long and worry-free retirement full of travel and good health? Sometimes our dreams are interrupted by unfortunate circumstances. With increasing age, there is also the increasing chance that a prolonged illness or disability could leave you unable to care for yourself for an extended period of time. In that event, long-term care insurance can provide you with all the assistance you might need even beyond medical and nursing care. Long-term care is not always used by the elderly. |ret||ret||tab|

A young or middle-aged person who has been in an accident or suffered a debilitating illness also can require long-term care.|ret||ret||tab|

About 43 percent of people age 65 and older today will enter a nursing home. If you're a woman, your chance of being in a nursing home after age 65 is 50 percent greater than a man's. About one out of every four people will remain in the nursing home for more than a year, while one in 10 will stay five years or longer, according to the U.S. Department of Health and Human Services.|ret||ret||tab|

Knowing what type of protection long-term care insurance provides is extremely critical. Long-term care is expensive and purchasing protection can be costly, too. |ret||ret||tab|

Generally, neither Medicare, private Medicare supplemental insurance, nor major medical insurance will pay for long-term care. Make note of who pays for what.|ret||ret||tab|

Private medical insurance pays only 3 percent to 4 percent of long-term care expenses.|ret||ret||tab|

Medicare pays about 6 percent of nursing home costs for short-term skilled care after hospitalization. Medicare also pays for some skilled at-home care, but only for short-term conditions, and not for the ongoing assistance that many elderly people need. |ret||ret||tab|

Medicare supplemental insurance covers some of the gaps in Medicare coverage but it is not for long-term care.|ret||ret||tab|

Medicaid, for those who qualify, will pay for long-term care expenses in Medicaid-approved facilities.|ret||ret||tab|

When looking for a long-term care insurance policy, one of the most important considerations in selecting the insurance is the financial strength of the insurer. You need to be clear on how the insurance company is defining its terms. Be sure to check out key coverage areas.|ret||ret||tab|

Guaranteed renewable The insurance company cannot cancel the policy in the future.|ret||ret||tab|

Flexible benefits trigger Usually occurs when there is an inability to perform two activities of daily living unassisted. |ret||ret||tab|

These functions include feeding, dressing, bathing, toileting, continence and moving from one place to another such as from a bed to a chair. |ret||ret||tab|

Inflation rider Regardless of how old you are, your benefits should rise with inflation.|ret||ret||tab|

Daily benefit amount A common benefit would be $100 to $150 a day in a nursing home and $100 a day for at-home care. This will vary depending on where you live.|ret||ret||tab|

Elimination period This represents the number of days you will be responsible for paying before your plan takes effect.|ret||ret||tab|

Pre-existing conditions Check the exclusion period for pre-existing conditions.|ret||ret||tab|

Premium waiver Whether in a facility or at home, premiums should be waived while you are receiving benefits.|ret||ret||tab|

There are three levels of care that you should also be aware of when selecting a policy:|ret||ret||tab|

Custodial care comprises 95 percent of long-term care insurance and covers home-health aides, companion and homemaker services. |ret||ret||tab|

Intermediate care, which accounts for about 4.5 percent of long-term care insurance, covers nursing and rehabilitation services provided by nurses, therapists and nurse's aides under the supervision of a physician.|ret||ret||tab|

Skilled care, which is provided by a licensed medical professional under the direct supervision of a physician, accounts for only one-half of a percent of long-term care. |ret||ret||tab|

Most of us plan carefully for retirement, but completely overlook the need to protect ourselves and our families against the costs associated with an extended illness. It can place enormous emotional and financial burdens on the entire family, leaving the person in need of care dependent upon others. |ret||ret||tab|

How will you pay for long-term care? The decision is yours, and education is the key to sound decisions.|ret||ret||tab|

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