by John Darer CLU ChFC CSSC RSP CLTC
What does Long Term Care have to do with settlement planning? In some cases everything!
What is a life care plan all about anyway?
"The life care plan is a dynamic document based upon published standards of practice, comprehensive assessment, data analysis, and research, which provides an organized, concise plan for current and future needs with associated costs for individuals who have experienced catastrophic injury or have chronic health care need"s. [Source: International Academy of Life Care Planners, 2003]
The operative word is "plan".
Consider the following questions, which could apply to anyone:
1. How many of you work with catastrophic cases where the tort feasor is uninsured or underinsured? If you suffer an injury that requires extended care and the negligent party is under insured, what plans do you (or they) have for financing extended care? In these cases, I'm not only talking "seasoned citizens". The need for long term care can arrive at any age.
2. How many of you are, or know of people, sandwiched between raising children or paying for college and have one or more parents who are over age 60?
I know of a contemporary , a single parent whose mother with Alzheimer's had no LTCi who had to quit her job for 6 months, while raising young teenage sons so she could care for her mother with Alzheimer's. The consequences to her of her mother not having LTCi were lost income, lost retirement accumulation opportunity, diversion of attention from children and personal wear and tear.
Have you discussed long term care with your spouse, parents, siblings,children friends?
3. How many of you are, or know of people, nearing retirement, possibly still paying for college and having one or more parents who are over age 70?
- Say you've been successful at saving for retirement and have a few million in the bank. Good work, you have been thinking about the future. But are you missing something?
- What have you allocated to pay for extended care inc case you and/or your spouse need it?
- Have you done any research into the costs of various forms of care and the ways in which such care is delivered?
- Have you had a discussion with your parents, siblings, and your own children to address long term care issues yet?
- If you (or your parents) needed extended care, where would you (or they) prefer to be?
- In a hospital setting?
- In a nursing home?
- In a senior commnity?
- In long term rehabilitation facility?
4. How many of you contribute, or know of people who contribute annually to a retirement plan?
Does it make sense to allocate a small percentage towards a stop loss that can protect the integrity of your assets and /or retirement come should you, your spouse, or your parents need extended care?
5. Who considers the long term health effects of being a parent/caregiver for a child suffering from catastrophic mental or physical injuries?
Does it make sense to do planning now when there are less likely to be underwriting hurdles and the price is much cheaper? Addressed earlier, LTC can serve as a comfortable "sinking fund" .
Long Term Care Planning
For those that plan ahead, long term care solutions are available that:
- Helps to maintain dignity
- Permits claimant and their families to make choices
- Helps Protect Savings, Retirement, Lifestyle, Longevity of Unpaid Caregivers (which are often family and friends)
- Helps Keep Families Together?
I bought my LTC policy at age 38.
On May 7, 2013 I addressed the Society of Settlement Planners on the subject of Long Term Care (see photo below) at its annual meeting at the Vdara Hotel in Las Vegas.
In late January 2013, I participated in a special project with a major American life insurance company, designed to help educate the public about long term care insurance and the real life impact it can have to families. During my May 7, 2013 presentation, with special permission of the producer, I held a private screening of the 5 minute video testimonial " Family Matters: The Darer Family Story". The video will be released in due course by the insurer.
John Darer is a Certified in Long Term Care (CLTC) and a member of the American Association of Long Term Care Insurance and offers a variety of long term care solutions among the settlement planning and financial planning services provided to clients. In addition to the CLTC and othe other designations cited above, John Darer is working towards the Chartered Healthcare Consultant (ChHC) professional designation.