00:16.500 --> 00:19.530

Caroline, I am so glad we're meeting. I'm really confused

 

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about all the things I'm getting in the mail about

 

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Medicare and Medicaid and my parents are aging and

 

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we're talking about insurance for them. Can you help?

 

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Sure. Leigh, we believe that protecting your independence

 

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and your assets is a major consideration in any investment plan.

 

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So let's talk a little bit about long-term care.

 

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Many people don't realize that unexpected and possibly chronic

 

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illnesses can quickly exhaust your hard-earned assets.

 

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In fact a recent studies have found that 70% of people

 

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over the age of 65 will require long-term care at some point in their lives.

 

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Well, can you explain what you mean by long-term care?

 

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 So long term care is required when you can no longer perform the activities

 

01:03.351 --> 01:07.800

 of daily living and there are six of them: Bathing, dressing

 

01:07.811 --> 01:11.750

eating, transferring, toileting, and continence.

 

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So think of the first thing to do when you get up in the morning,

 

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 or when you experience any sort of cognitive decline.

 

01:18.140 --> 01:21.335

 Oh, I haven't given that subject much thought in the past.

 

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 Can't I just rely on my friends and family

 

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 to help out if I have an issue?

 

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 That might work if we're talking about a short-term illness.

 

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 But let's consider that if this were a longer-term situation,

 

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what would be the emotional and physical toll on you,

 

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your family, and friends?

 

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Boy, this is something that I really need to think about.

 

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And another question I have is won't my savings be enough

 

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 to cover any care I might need?

 

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 It's definitely possible. But unfortunately, savings can be decimated

 

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by a long-term care event in many situations.

 

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Well, how about Medicare then?

 

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Well, Medicare provides only limited benefits, and Medicaid generally

 

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requires all other assets to be exhausted first.

 

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That's why we like to consider purchasing an insurance policy

 

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to cover long-term care needs.

 

02:11.000 --> 02:13.540

 Does insurance just cover nursing home care?

 

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Good question. Actually, contrary to popular belief

 

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care can be provided in a number of settings, including the home,

 

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where most people want to stay as long as they can.

 

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In fact, over 50% of claims actually begin with care in the policyholder's home.

 

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Am I out the cost of insurance premiums

 

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if I actually don't use the long-term care?

 

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There are different types of insurance. So some actually have a death benefit

 

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that will go to your beneficiaries

 

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or a return of premium if the long-term care isn't used.

 

02:44.200 --> 02:46.275

Do I pay more, though, if I'm older?

 

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 Well, similar to life insurance age and health do affect the cost of coverage

 

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and not everyone can qualify. So generally

 

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 the best time to apply as in your 50s to mid-sixties

 

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because the older you are the higher the premiums will be.

 

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This is really good information to know.

 

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I think the takeaway here, Leigh, is that long-term care

 

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policies can play a beneficial role in your investment plan

 

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and that they can be tailored to your needs and your budget.

 

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We're here to help you understand those options.