WEBVTT 00:00:03.233 --> 00:00:04.333 Hi again. 00:00:04.333 --> 00:00:06.600 align:middle The next 3 minutes, I'm going to share with you 00:00:06.600 --> 00:00:10.533 align:middle three common misunderstandings or myths surrounding long term care 00:00:10.533 --> 00:00:13.900 align:middle planning that you don't know about, but that you should. 00:00:34.000 --> 00:00:38.633 align:middle According to a recent article on Courier Journal.com, the fastest growing age 00:00:38.633 --> 00:00:43.400 align:middle group in the United States, is people from the age 85 years and older. 00:00:43.400 --> 00:00:47.133 align:middle The second largest, fastest growing age group in the United States is people 00:00:47.133 --> 00:00:50.633 align:middle turn the age 100 years and over and they're called centenarians. 00:00:51.666 --> 00:00:53.400 align:middle Did you also know that people 00:00:53.400 --> 00:00:56.133 align:middle from the ages, 65 years or older today 00:00:56.700 --> 00:01:00.233 align:middle have a 70% chance of some sort of long term care service 00:01:00.500 --> 00:01:03.433 align:middle or support in the remaining years of their lives? 00:01:03.600 --> 00:01:06.800 align:middle And this according to the Association for Community Living. 00:01:07.800 --> 00:01:11.700 align:middle Bill Gates even donated $50 million to Dementia 00:01:11.700 --> 00:01:16.133 align:middle Discovery Fund, according to the blog back in 2017. 00:01:17.233 --> 00:01:18.500 align:middle Here are some other interesting 00:01:18.500 --> 00:01:21.933 align:middle factoids or statistics for any long term care. 00:01:22.766 --> 00:01:24.933 align:middle An estimated 6.5 million 00:01:24.933 --> 00:01:27.800 align:middle people who are 65 years or older today 00:01:28.166 --> 00:01:31.533 align:middle in the United States have Alzheimer's dementia disease. 00:01:31.800 --> 00:01:35.766 align:middle That number is projected to grow to 13.8 million 00:01:36.233 --> 00:01:38.766 align:middle by the year 2060, according 00:01:38.766 --> 00:01:41.133 align:middle to ALS Journal dot com. 00:01:41.833 --> 00:01:45.733 align:middle On average, people who have Alzheimer's dementia disease 00:01:45.733 --> 00:01:50.733 align:middle live between three and 11 years later after they're diagnosed. 00:01:51.000 --> 00:01:53.533 align:middle Some have been known to live up to 20 years 00:01:53.533 --> 00:01:56.466 align:middle or longer, according to the Mayo Clinic. 00:01:56.466 --> 00:02:01.133 align:middle The average long term care claim is about five and a half years, 00:02:01.133 --> 00:02:04.166 align:middle and this according to the Association of Long Term Care. 00:02:05.300 --> 00:02:08.833 align:middle And according to Lincoln Financial Group in California, 00:02:09.000 --> 00:02:12.766 align:middle the average annual cost of a private room as a skilled care 00:02:12.766 --> 00:02:16.833 align:middle facility is $135,118 00:02:17.433 --> 00:02:21.766 align:middle and $93,600 is the average annual cost 00:02:22.133 --> 00:02:26.200 align:middle for a certified home health aide provided by a home health agency, 00:02:27.266 --> 00:02:28.166 align:middle and that 00:02:28.166 --> 00:02:30.500 align:middle those costs are projected to grow about 3 00:02:30.500 --> 00:02:32.700 align:middle to 5% per year. 00:02:33.633 --> 00:02:36.166 align:middle But according to a recent survey 00:02:36.466 --> 00:02:39.566 align:middle of Americans, most Americans underestimate 00:02:40.000 --> 00:02:43.800 align:middle the cost of long term care to be about $54,000 a year. 00:02:44.766 --> 00:02:48.433 align:middle So that all being said, you know, longevity is increasing. 00:02:48.866 --> 00:02:50.933 align:middle Medicine is improving. 00:02:50.933 --> 00:02:53.166 align:middle But Alzheimer's disease and cognitive 00:02:53.200 --> 00:02:56.200 align:middle impairments are also on the rise. 00:02:56.200 --> 00:02:58.600 align:middle Now, this can have a major consequence 00:02:59.166 --> 00:03:01.333 align:middle on a person's finances 00:03:01.333 --> 00:03:03.966 align:middle and retirement plan if they’d be able to plan for this. 00:03:05.266 --> 00:03:06.766 align:middle So here are some three common 00:03:06.766 --> 00:03:10.666 align:middle myths or misunderstandings from long term care coverage. 00:03:11.600 --> 00:03:15.100 align:middle According to Lincoln Financial Group, 65% of Americans feel 00:03:15.100 --> 00:03:18.000 align:middle that Medicare or their health 00:03:18.000 --> 00:03:20.633 align:middle insurance plans will cover long term care costs. 00:03:21.733 --> 00:03:25.566 align:middle Now, Medicare is very short term and limited and doesn't 00:03:25.933 --> 00:03:27.966 align:middle cover ongoing care needs like 00:03:28.733 --> 00:03:31.600 align:middle bathing, dressing, other active daily living. 00:03:32.966 --> 00:03:34.200 align:middle And, you know, 00:03:34.200 --> 00:03:38.600 align:middle health insurance and Medicare are not designed to cover 00:03:39.266 --> 00:03:41.833 align:middle skilled care facilities or in-home care. 00:03:42.666 --> 00:03:47.566 align:middle And if you do qualify, they may pay for a portion 00:03:47.966 --> 00:03:50.800 align:middle of skilled care costs for up to 100 days only. 00:03:51.366 --> 00:03:54.933 align:middle And I just went through this with my mother about a year ago, so I can attest to all this. 00:03:56.066 --> 00:03:58.333 align:middle Another common myth or misunderstanding 00:03:58.833 --> 00:04:02.433 align:middle is that Medicaid will cover long term care costs. 00:04:02.666 --> 00:04:05.000 align:middle Now, Medicaid is really a welfare program. 00:04:05.266 --> 00:04:10.066 align:middle They only cover custodial care after a person has spent all their money and assets 00:04:10.533 --> 00:04:12.733 align:middle and the coverage is typically poor. 00:04:14.100 --> 00:04:15.933 align:middle A final or a third 00:04:15.933 --> 00:04:18.800 align:middle common misunderstanding, a myth is that, 00:04:19.800 --> 00:04:21.866 align:middle you know, people think that their family 00:04:21.866 --> 00:04:25.800 align:middle will help with their long term care needs if need be. 00:04:25.833 --> 00:04:29.766 align:middle Now, the average time required for long 00:04:29.766 --> 00:04:33.266 align:middle term care service in a week is 60 hours of help. 00:04:34.066 --> 00:04:36.933 align:middle Do you really want to burden family with that? 00:04:37.600 --> 00:04:39.866 align:middle So here's how I tackle this problem for my clients. 00:04:40.533 --> 00:04:42.700 align:middle Number one, utilize insurance planning solutions 00:04:42.700 --> 00:04:45.533 align:middle that could be a good potential bid for their financial years, 00:04:46.033 --> 00:04:48.366 align:middle and just a nice addition to what they're doing financially. 00:04:49.100 --> 00:04:54.166 align:middle Or second, if insurance is not a fit, we’ll plan for it in their Envision plans. 00:04:55.500 --> 00:04:56.433 align:middle So by planning 00:04:56.433 --> 00:05:00.200 align:middle ahead, I help protect my client's assets and also loved one 00:05:00.200 --> 00:05:02.733 align:middle who maybe long term care services down the road. 00:05:04.200 --> 00:05:08.266 align:middle So comment below and send me a message on either LinkedIn or Facebook 00:05:08.266 --> 00:05:11.066 align:middle and I'd be happy to send you a weekly market update report 00:05:11.433 --> 00:05:13.900 align:middle titled Looking Ahead. 00:05:14.133 --> 00:05:15.300 align:middle See you again soon.