Did you know that just about half of all Americans turning 65 today will require long-term care (LTC) in their later years? According to the Genworth Cost of Care Survey 2022, the daily median cost of an in-home health aide is $159.00 and the daily median cost of in-home health services, such as homemaker services and custodial care, is $156.00. As you can imagine, finding sustainable funding for LTC needs can be a challenge. Beyond traditional Long Term Care Insurance, there are several funding options available. Here’s some of the most common:

1. Annuities

Although among the least-used insurance products for long-term care (LTC) benefits, annuity/LTC products deliver a lifetime income stream that increases if this type of care is needed. It’s suggested that pure LTC products are best, but if you’re declined LTC coverage by an insurer, annuities can serve as a healthy backup.

2. Life Insurance

Whole, term, or universal life insurance can all be converted into an LTC account. During this conversion, the policy ownership is transferred to an entity that acts as a benefits administrator, who takes on the responsibility of premium payments.

3. Qualify for Medicaid

Under the reality that many Americans are simply living longer, this strategy becomes more viable the closer you’re to running out of money. The government assesses income and asset levels when deciding who qualifies, so once total assets are low enough, Medicaid will kick in. However, it should be noted that private insurance will likely provide a better quality of life.

4. VA Benefits

If you’re a veteran or a spouse of a veteran, many different benefits/compensation programs are available through Veterans Affairs. Two of the most popular LTC services are Housebound and Aid and Attendance. However, the application process can be complex and lengthy, so be sure to consult with a VA benefits expert before you start.

Adapted from Genworth1

Adapted from AgingCare2

 

Securities offered through SCF Securities,Inc. Member FINRA/SIPC 155 E. Shaw Ave. Suite 102, Fresno, CA 93710 • (800) 955-2517 •Fax (559) 456- 6109. SCF Securities, Inc. and Creative Financial Strategies LLC are independently owned and operated. www.scfsecurities.com Note: Securities offered through SCF Securities Inc., Investment Advisory Services offered through SCF Investment Advisors, Inc.This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.  Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.

1 https://www.genworth.com/aging-and-you/finances/cost-of-care.html

2 https://www.agingcare.com/articles/paying-for-home-care-155405.htm

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