Archive for June, 2011

Response to Last Month’s Article, “2 Alternatives to Traditional Long Term Care Insurance”

June 21, 2011

The article discussed combination life insurance-long term care and annuity-long term care policies.  Several readers have since asked me if people who were uninsurable for traditional long term care insurance could qualify for these new hybrid policies.  The answer is “maybe”.  Underwriting for these policies is just a little bit, but not much, easier.  Folks with major underwriting issues (Examples: daily oxygen use, dementia, multiple sclerosis) remain uninsurable.  Please contact me if you have questions about combination or traditional long term care insurance policies.

Disclaimer: Actual policy language, rather than the contents of this eNewsletter always takes precedence.  Long term insurance policies vary from company to company & within the same company.  Raymond Smith, The Long Term Care Specialist, does not give legal or tax advice.  Consult your tax advisor or attorney for these matters.

 

© Raymond Smith, The Long Term Care Specialist, 2011

Latest Cost of Long Term Care Survey

June 21, 2011

Genworth Financial has released the 2011 Cost of Care Survey.*  The national median cost of  a nursing home private room is $213 per day or $77,745 per year.  That cost in the Denver, CO area is $221 per day ($80,665 per year).  Here are the details:

Home Health Aide (Provide direct assistance with Activities of Daily Living…bathing, dressing, eating, toileting, continence, transferring):   National Median Cost: $19/hour.  Metro-Denver Median Cost: $22/hour.  The Denver home care agencies that do a better job of training & supervising their caregivers charge closer to $25/hour.

Homemaker services (Provides companionship, light housekeeping, meal preparation.  Not hands-on help with the person needing care.):  National Median Cost: $18/hour.  Metro-Denver median cost: $21/hour.

Adult Day Care:  National Median Cost: $60/day.  Metro-Denver Median Cost: $64/day.

Assisted Living Facility:  National Median Cost: $3,261/month.  Metro-Denver Median Cost: $3,600/month.

Nursing Home Care, Private room: National Median Cost: $213/day.  Metro-Denver median cost: $221/day.

Nursing Home, Semi-Private Room:  National median Cost: $213/day.  Metro-Denver median cost: $204/day.

Readers with sharp eyes may remember the October, 2010 Met Life Market Survey as published in my March 2011 eNewsletter.  The numbers are a little different.  These differences are more the result of different methodologies than actual changes in costs.  Moving forward, I will standardize on the annual Genworth Financial annual survey costs because 1) I think the Genworth numbers are more accurate and 2) with Met Life no longer offering long term care insurance, I do not know if they will continue doing cost surveys.

Here is the take-away: As expensive as long term care services are today, they will become even more expensive as years go by & we all become older.  At the approximate 5% annual cost growth rate in 10 years a nursing home private room (or 10 hours per day of home care) will cost $360 per day = $131,395 per year.  Each year, the cost care is greater than the year before so a need for care that begins ten years from now & lasts five years will cost $726,000…for one person!  Where will the money come from? 

Disclaimer: Actual policy language, rather than the contents of this eNewsletter always takes precedence.  Long term insurance policies vary from company to company & within the same company.  Raymond Smith, The Long Term Care Specialist, does not give legal or tax advice.  Consult your tax advisor or attorney for these matters.

 

© Raymond Smith, The Long Term Care Specialist, 2011

13th Annual Denver Senior Law Day

June 21, 2011

Sponsored by the Colorado Bar Association, this is an excellent, almost free (suggested $10 donation) program for seniors, people whose parents are seniors & anyone who aspires to become a senior.  This year’s event will be on Saturday, July 23rd from 7:00am – 1:00pm.  Location is the Denver Merchandise Mart (Expo Building on the East side), 451 E. 58th Ave. Denver 80216.  This is just East of I25 & 58th Ave.

Twenty-seven senior oriented workshops will be offered, beginning at 8:00am.  Here is a sampling: Assisted Living & Nursing Home Issues, Wills Trusts & Your Property, Maintaining Your Independence at Home, Medicare 101, Taking Care of Pets and Your Pets Taking Care of You, and VA Benefits.  I will be presenting a workshop on Long Term Care Insurance at 9:10am & again at 12:10pm.

For more information or to pre-register (please do so by 7/10/2011 so enough books & refreshments can be ordered.), please go to www.seniorlawday.org.  I will also be volunteering at the Society of Financial Service Professionals table.  Please say “Hi” if you are going to be there.

Disclaimer: Actual policy language, rather than the contents of this eNewsletter always takes precedence.  Long term insurance policies vary from company to company & within the same company.  Raymond Smith, The Long Term Care Specialist, does not give legal or tax advice.  Consult your tax advisor or attorney for these matters.

 

© Raymond Smith, The Long Term Care Specialist, 2011