The Dilemma of Long-Term Care

The need for long-term care in the United States is growing rapidly as the Baby Boomer generation reaches retirement age and beyond. As the demand is rising, so is the cost of long- term care in Idaho. Once you reach age 65, there is a 70% chance you will need some form of long-term care. Let’s look at typical long-term care costs in Idaho:
  • The average annual cost of care in an Idaho nursing home is estimated to be $83,000.
  • Private rooms can go for as much as $88,000.
  • In-home care with 44 hours per week of care amounts to around $46,000.
  • Adult day care is around $30,000.
  • Assisted living facilities in Idaho cost approximately $39,000.
The big problem with traditional long-term care policies is they are “use it or lose it.” In other words, if you never need long-term care you lose all the premium dollars you paid in. That’s enough to count out most people in Idaho, who wants that gamble?    

Hybrid Long-Term Care as a Solution

Capital Retention represents the very best, well-known and innovative insurers in America, and we serve every state except New York. We offer two basic directions for long-term care insurance. The first is a flex-pay plan that most every family in Idaho can afford and those that can’t, may very well qualify for Medicaid. Just a word of caution, if you are planning to spend down mom and dad’s assets to get them to qualify for Medicaid, you should know that states, (including Idaho) are clamping down on this practice, and whoever holds your estate assets could be asked to pay back benefits, paid out within 5 years of the spend down. Our second plan is for wealthy estates, with liquid assets. In this case, we simply reposition your worst-performing assets to a one-time, long-term care insurance premium. This plan multiplies the value of those assets 3-8X on day one of your policy, depending on your age at issue. In other words, if you put in a one-time premium of $100,000, your long-term care benefits would be worth $300,000 to $800,000 immediately, again, depending on your age at policy purchase.    

The Bottom Line

Idaho is no exception to the continuously rising rates for managed care in the United States. Capital Retention represents insurers with plans that eliminate the problem of rising rates. With a one-pay premium, you no longer worry about your premiums rising, in fact, you won’t even have a premium in the future. Our every-family plan allows you to age at home and use your cash benefits to pay your family or friend caregivers. This arrangement costs about one-half of care costs in a nursing home, so your benefits could last twice as long. This is also a Partnership-Qualified plan approved by the State of Idaho, who requires a 1-5% inflation protection rider added to your policy. These plans allow a 1:1 Medicaid asset allowance, per dollar of long-term care insurance benefits you receive. So, if your insurer paid $200,000 in claims, you could keep $200,000 in assets above the normal Medicaid spend down rules and still qualify for Medicaid. Let’s talk. The bottom line is, Capital Retention has Idaho covered when it comes to long-term care insurance that makes good business sense. Give us a call and we will provide you access to our online calculator, where you can see how different riders and interest compounding effects your benefits and premium in real time. This makes it easy to dial in just the right mix of benefits for the premium cost you want to pay.

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