Here's what to know about long-term care planning

The article, What Are the Odds Your Client Will Need Long-Term Care at ThinkAdvisor.com, highlights data from HealthView Services, a producer of healthcare cost-projection software for financial advisors.

The projection for healthy 65-year-old couples living to their projected actuarial longevity has a 75% chance that one partner will require a significant level of long-term care. The care needed will be required at assisted living, skilled care nursing, and even skilled home care. 

The data reflects the results of another study published at INQUIRY in November 2005 where the analysis projected that people currently turning 65 will need LTC for three years on average. The needed care will be covered by public programs and some private insurance, but much of the care will be an uninsured private responsibility of individuals and their families.

The study at INQUIRY suggests that a third of those now turning 65 are projected to never receive family care, and a third will rely on family care for more than two years. And half of people turning 65 will have no private out-of-pocket expenditures for LTC, while more than one in 20 are projected to spend $100,000 or more of their own money.  

What People Need to Know

• For an average healthy 65-year-old couple, there's a 75% chance that one partner will require LTC, according to HealthView Services.
• Chronic conditions reduce the likelihood of needing care but increase the average duration for those who need it.
• An average 50-year-old couple can expect to pay significantly more for long-term care.

HealthView Services drew on the firm’s actuarial data to highlight the projected LTC costs, the probability that care will be required and duration of care, and the significant effect of age, gender, health condition and location on these expenses. 

There’s a growing trend that people are more aware of long-term care and the likely need for it in the years ahead but even today, most stick their neck out when it comes to these expenses by sweeping the issue away. 

Family Caregiving Exposure

Coming from family caregiving and working in the senior care sector, I know the significance of planning for personal care needs and their expenses long before one requires help.

My work revolves around the aging solo cohort who in many cases have no spouse, children or family members to count on for some kind of support. Unfortunately, most adults don’t prepare and find themselves in a frenzy looking for help because they’ve fallen into an emergency situation. And that’s the worst time to seek out resources because the stress is too overwhelming.  I offer tools and simple worksheets that help you plan. 

Not a week goes by without receiving three or four frantic messages from people in a crisis situation. They’re fearful and begging for help. I do my best to direct them, but where they land usually isn’t in the best of situations. 

What Adults Living Solo Need

What sets those aging well apart from those who are not is having a plan—those with one age better because they’re prepared to manage the surprises. More importantly, they’ve done the research and have learned the action steps required to prepare for any situation.

As a whole, society is reactive, especially when dealing with life events like medical emergencies, or if one needs care at home, or the body develops a chronic condition.  No one wakes up thinking, “Today I’m going to put a plan together just in case I need it.” People do need one, they just don’t know where to start.

So, I’ve created useful tools and processes that assist individuals when thinking about their future. It’s the one I developed for myself years ago after my parents died, and now I teach others to do it for themselves. The Aging Well circle is a tool that launched my own future plan. The circle came about after observing my parents in later years. The tool gave me and now it gives others the chance to assess life’s domains and the opportunity to witness where they fall short and where they excel.

Once individuals have a solid handle on their strengths and weaknesses of the top concerns of aging, they can proceed to take action.  The top concerns address health, home, location, social connections and engagement, nearby support, transportation, legal and financial matters, and exercise.

​The objective is to assess your life and needs, know your requirements and preferences, find solutions that appeal to your preferences. This is an abridged version of the Aging Well Circle however, it’s a great place to start and it will set your life on the right trajectory of aging well. Here’s what to know about long-term care planning.

Join me at AMAVA where I guide people to plan for the years ahead.

Feel free to send me an email for more information.