Women Most Likely to Need Long-Term Care

Since most Americans cannot pay for long-term care costs out of their regular budgets, many are forced to drain their savings because they didn’t properly plan. While long-term care is a huge issue for everyone, women in particular bear unique risks.

On average, women live about five years longer than men and are also 10 times more likely to reach age 85, according to the American Association for Long-Term Care Insurance (AALTCI). The harsh reality of these statistics is that women are most likely to reach an age where long-term care is needed. What’s more, husbands often need care first, meaning couples without plans must deplete their retirement savings to pay for it. This often leaves the wife, who is likely to live several more years, with no spouse and little money to depend on for her own care down the road.

Consider the case of a couple in their 50s. Both of their lives changed in an instant after the husband fell while pruning a tree and broke his spine. The accident left the husband in need of constant care. Because they didn’t have a long-term care plan, the couple was forced to use their assets to pay for care. After spending more than $400,000 out of pocket for her husband’s care, the wife finally decided to protect her own future with a long-term care insurance policy.

With women being the most vulnerable to long-term care issues, it’s important for all women to educate themselves about long-term care options to help preserve independence for both themselves and their loved ones. Contact us today for a no-cost, no obligation consultation.

Forbes article makes yet another case for owning Long Term Care Insurance – state filial responsibility laws

In an article today, “Son Hit With Aging Parent’s $93K Nursing Home Bill“, writer Carolyn Rosenblatt shares a rough lesson on the filial responsibility laws in the U.S.  30 states have statutes requiring family members, including spouses, children, and sometimes even parents to pick up the costs of providing care to their loved ones.  While these laws have rarely been enforced in the past, we could very well see more and more cases like this as the population ages and nursing homes and other care providers scramble to make sure the care they provide has been paid for. 

Not sure if your state has filial responsibility laws?  Click here for a state-by-state listing.  Whether your state does have similar laws or not, the time to start planning for your own likely long term care needs is now.  Contact us today for help in exploring your options.

Women Bear the Brunt of Caregiving Tolls

Today, 70 percent of unpaid caregivers are women, with most of them being wives and adult daughters. While this can result in special time with an older person, it can also involve taking on caregiving roles that many women are not emotionally or physically prepared for. Helping an elderly loved one take a bath or get into bed requires physical and mental strength.

Moreover, the toll on those caring for family members in poor health can be horrendous. On average, caregivers who suffer extreme stress lose about 10 years of their life, according to the National Family Caregivers Association. Caregivers also tend to have higher levels of depression, perceived stress and lower levels of self-efficacy than non-caregivers. In fact, people who spend at least 36 hours on providing care each week experience double the usual rate of depression.  

A lot of caregivers are also forced to balance care duties with their regular job. According to an industry study, almost 60 percent of caregivers currently work or have worked while providing care. Additionally, many of these caregivers must adjust their careers by working less hours or giving up their jobs completely.

Too many women don’t think about how their own health and wellbeing will be affected when they volunteer to look after an ailing spouse or parent. While long-term care insurance can’t replace what families do, it can build on existing support by offering caregivers financial compensation, caregiver training and other helpful services that make providing care easier for everyone involved.

Long-Term Care Insurance Offers Women Many Benefits

Roughly 70 percent of all people who live beyond age 65 will need some form of long-term care before they die. And with women being the most likely to become a caregiver, a care recipient or both, it’s important for women to understand this unique issue.

Nearly 90 percent of people over the age of 55 would like to save enough money to have financial peace of mind during retirement. Since long-term care insurance helps protect assets, many people purchase policies for this reason.

Long-term care insurance also gives women the freedom of choice and control over the care they receive. Whether individuals wish to stay in their own homes, in an assisted living community or in a nursing home, this insurance lets the policyholder stay in control, which means more flexibility and better care.

Most women don’t want to burden their family with the physical and emotional responsibility of this type of caregiving. Conversely, these same women don’t think about how their own health and wellbeing will be affected when they volunteer to look after an ailing spouse or parent. While long-term care insurance can’t replace what families do, it can build on existing support by offering caregivers financial compensation, caregiving training and other helpful services that make providing care easier for everyone involved.

It’s important for all women to educate themselves about long-term care options to help preserve independence for both themselves and their loved ones. Contact us today for a no-cost, no obligation consultation.

Government Rewards Businesses Offering Employees Long-Term Care Benefits

With multi-life programs, long-term care insurance can be a win-win for both employers and employees. Although some employers have started to offer long-term care insurance due to employee demand, others have added it because of the tremendous tax advantages.

Under certain Internal Revenue Codes, there are tax perks for businesses that buy long-term care insurance. Premiums for tax-qualified policies paid for employees, their dependents, spouses and retirees are 100 percent deductible as a business expense for C-corporations.

All or a portion of premium expenses for tax-qualified policies are also deductible for sole proprietors, partners, members of Limited Liability Companies and shareholders or employees of S corporations. How much these individuals can deduct is limited to an eligible amount based on the applicant’s age.

Additionally, employees receive benefits from long-term care policies tax-free.  Spouses and qualified family members are also eligible for coverage and discounts under multi-life programs, which can add up to as much as 45 percent in premium savings.

Long-term care insurance is one of the only benefits that allow employers to deduct the cost while the employees receive both the premiums and the benefits on claim tax-free. In other words, this is the most tax-advantaged benefit on the market today.

Attract and Keep Top Talent with Long-Term Care Benefits

With qualified professionals in high demand, a long-term care insurance program is a great solution for businesses looking to offer a flexible and competitive benefits program. According to a 2009 survey, more than half of full-time employees with defined benefit plans said the package was the main reason for staying with their current employer.

 Long-term care insurance is also a great way to reward and recognize key employees for their hard work and dedication. Many businesses are using these benefits to attract and keep qualified professionals thanks to the HIPPA accepted benefit status of long-term care insurance.

Business owners can now select a group of people based on a class of who is going to receive the long-term care benefit. This creates a huge opportunity for companies to reward their top talent with a benefit they are not required by law to provide to all employees.

Since long-term care insurance can be offered as an employer-paid benefit, a voluntary employee paid benefit or a combination of both,  companies can use long-term care coverage as an effective retention tool without paying a dime for it themselves. Many business owners have allowed their key employee to use their annual bonuses to fund premiums.

Long-term care insurance offers protection that no other benefit can provide and with the advantages of multi-life programs, it’s also a wise business investment.

Protect Employees and Bottom Line with Long-Term Care Benefits

Offering long-term care coverage is a key way business owners can show they understand and are responsive to employee needs. Nearly 30 percent of people living in the U.S. provide some type of informal care for an aging or ailing loved one.

Employees currently facing long-term care issues are acutely aware of the financial, physical and emotional impact of this type of care. These people want to protect their futures better than their parents did and they want their employers to help them.  Long-term care benefits offer employees a way to help protect their loved ones from the burdens of caregiving.

Offering employees an effective way to manage long-term care costs also helps them focus on their careers, which can have a very positive effect on a company’s bottom line. Businesses in the U.S. lose roughly $34 billion each year in lost productivity due to caregiving, a recent MetLife study found. In fact, 48 percent of workers lost a job, changed shifts or missed a career opportunity due to caregiving responsibilities.

Long-term care insurance offers protection that no other benefit can provide and with the advantages of multi-life programs, it’s also a wise business investment. If you are a business owner, we would love to educate you on the benefits of paying long-term care premiums through your company.