Long-term care advisor Joanne Boyd is passionate about what she does—taking the complex topic of long-term care insurance and making it very simple.
A nurse practitioner, Joanne always was aware of health issues. “The reason I started working as a long-term care specialist 18 years ago was that I watched my father suffer a massive stroke, which required him to live in a nursing home for the last 10 years of his life,” Joanne said.
“It wiped out his entire savings and pension to pay for the nursing facility,” she continued. “It took only two years before my mother had spent their assets, thus making him eligible for Medicaid (government health insurance for the poor). At one point, the state filed a lien on the home for Medicaid reimbursement to reclaim the money spent on his care.”
As we live longer, chances of developing chronic, debilitating illnesses or dementia are high. Statistics show past age 65, at some point in our lives, more than 70 percent of Americans will require some assistance with basic daily activities (bathing, getting dressed, feeding oneself or using the bathroom), or supervision for someone with memory issues.
“This is not just an aging issue,” Joanne explained. “Almost 40 percent of people in long-term care today are under 65, the result of chronic illnesses or accidents.”
Long-term care is defined as the point at which people need help with basic tasks, or just can’t be left home alone. What many people don’t realize is typical medical insurance and Medicare do not cover long-term custodial care. And, unfortunately the government (Medicaid) is not going to take care of you until you’ve run out of your lifetime savings.
“To put it bluntly,” Joanne stated, “long-term care is very expensive and can deplete a retirement nest egg that took 40 years to build, in just a few short years. In Arizona, the average cost for a home health aide is $20 per hour or about $45,000 per year, assisted living facilities, $40,000 per year and nursing homes, $80 to $101,000 per year.”
If you or a loved one needs care, who will do it? Can a family member stop or reduce work to stay home to give care? How do I feel if that occurs? Can one spouse be physically able to assist the other? If outside care is needed, from where will the money come?
“If we depend on savings, we run the risk of running out,” Joanne said. “If we depend on our families, we place a tremendous burden on them. They may want to care for you, but how long can they sacrifice their jobs and family responsibilities? In some cases, there is no family to call upon.”
Some people assume they can transfer their money and thus qualify for Medicaid. This has limitations for your choices of care and penalties attached.
Long-term care insurance is more affordable than people think. Some options include discounts for good health, partner discounts and returning the premium if not used. Other options include a shared plan for couples, or even plans linking to an annuity or life insurance plan, which assures that your funds will be returned.
Joanne is often asked, “When is the right time to look into this?” The answer is simple. “The younger and healthier you are makes it less costly, and you are more likely to qualify for a plan. My clients range in age from 39 to 80, but most start this coverage in their 50s or 60s,” stated Joanne.
Being a long-term care specialist, Joanne can help you explore all your options, make this simple to understand, and look at all the top LTC insurance companies to compare benefits and prices. She also can assist you in determining whether or not this would bring you the peace of mind you deserve.
For more information, visit longtermcareadvisors.com/boyd, or call Joanne’s office at (480) 699-9610, or her cell at (815) 370-1857. You also can send an email to joanneboyd80@gmail.com.