Seniors, can we talk?
I thought I’d give you an update on Ruth and Bob. As you may recall from last month, Bob has had some health issues and Ruth has been his caregiver. It seems like in a real short time Bob has been diagnosed with Alzheimer’s, had a heart attack and diagnosed with cancer. They had bought a critical illness policy which certainly came in handy. It paid them a total of $30,000 - $10,000 after each of his three (3) diagnoses. Bob is doing fine – under the circumstances. Ruth, on the other hand, is not. She’s tried to take care of Bob through each condition the very best she could. Now, it’s getting to the point where she just simply cannot take care of him any longer. Due to his Alzheimer’s, he leaves the house and wanders off, when he feels like it. Ruth can get no rest 24/7 and always worries about him. Ruth has visited several assisted living facilities – goodness, “facilities” sounds so cold. But at some point “you gotta do what you gotta do”. She has found a “second home” for him that she feels is suitable for him. The care is what he needs. Hopefully he’ll be happy or at least not unhappy. Ruth plans on Bob moving there next week. Even though the care is what Bob needs, it is expensive. I don’t mean to sound insensitive but at some point you’ve got to be realistic. The bill will have to be paid. Fortunately, the long term care policies that Ruth and Bob purchased a few years ago provide assisted living coverage (that means the policy will reimburse Ruth for Bob’s care in an assisted living facility based on the benefit’s in Bob’s policy). Ruth and Bob selected a 90 day elimination/waiting period which means that (most) benefits will be reimbursed after care has been provided for 90 days. So after Bob has been in the assisted living facility for 90 days, the insurance company will reimburse Ruth for the cost of the assisted living facility based on Bob’s policy. The amount that Ruth will be reimbursed will be based on the benefits that Ruth and Bob selected. They selected a $3000 a month benefit which means Ruth will be reimbursed up to $3000 a month for Bob’s care. If the assisted living facility is more than $3000 a month, Ruth will be responsible for paying that. How long will Ruth be reimbursed for Bob’s care? That also depends on the benefits Ruth and Bob selected when they bought their policy. Because both of them have family history of parents and grandparents living a long, long time and because there are so many medical procedures and advances that can prolong life, Ruth and Bob selected an “unlimited” benefit period. This means that benefits will never run out. Ruth will never receive a letter from her insurance company informing her that his is the last reimbursement check she will be getting. Since costs of everything seem to be going up, when Ruth and Bob took out their long term care policy, they included a benefit called “inflation protection”. They felt that the cost of care would be more when they actually needed it than the cost of care when they took the policy out. Yes, inflation affects the cost of care in an assisted living facility, too! So much to Ruth’s surprise, Bob’s monthly benefit is actually $3477 a month instead of the $3000 she thought it was going to be. Ruth and Bob’s friends who knew they had bought a long term care policy had asked them a lot of questions about their decision. At first, some asked “why are you spending that money to pay the premium for something you may never need?” Why not go on a trip?” They also had friends who had experienced caregivers at home, assisted living facilities and nursing homes for their family members who asked more serious questions like: what does Medicare cover? What are the odds that I’ll need care? What is the best age to start planning? Can you get care in your home? How much coverage is the right amount? Why is it important for women to plan? If you have some of these same questions, ask a CERTIFIED long term care agent. How do you know if the person you talk with is certified? Just ask them. And make certain the person you talk with is knowledgeable and experienced about these issues. Got questions or concerns today? Call 870-523-6771 and say “Caroline, can we talk?” (Yes, I’m certified!) Originally Published March 2014
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AuthorCaroline Beauchamp specializes in personalized life and health insurance solutions. Archives
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