The health care system that deals with long term care is already stressed by current requirements.  A report released today by the Washington Post predicts that 10 million baby boomers will develop Alzheimer’s, requiring a serious look at long term care, long term care insurance, and the nation’s health care system in general.  The report, released Tuesday by the Alzheimer’s Association, showed that the disease is now the seventh deadliest in the nation and that women are at greater risk than men.

With one in eight boomers developing Alzheimer’s as they age, there is a serious need now, more than ever, to look into long-term care insurance to pay for the long stay often required when the mind-wasting disease strikes.  We wrote about how you can stretch a policy and now may be a good time to revisit that article.  Alzheimer’s patients can have long-term care stays of as long as many years, going way beyond the 3-5 years typically associated with other ailments that activate long-term care benefits.

I recently read that two ways to pay for long term care are becoming front and center for many baby boomers, who are seeing or have already seen their parents struggle with long term care situations.  The options of a reverse mortgage and long-term care insurance are both very popular ways to finance the expense of long term care.

Figures range from $100 to $400 per day for long term care, depending on what is being provided.  Many Americans will use their policies for home health care, which is the least costly option usually, but is also the least intensive.  Next comes assisted living, which is of course a more intensive plan of care and is for folks with more serious conditions.

A reverse mortgage is just what you’d expect it to be… rather than pay the bank, the bank pays you!  Reverse mortgages are generally available to those 62 or older in the U.S.  The money can be paid in a lump sum, but is usually paid in small monthly increments.  Of course, as time goes on, the bank will have more and more of the equity in your home.  For seniors, this may be okay.  However, it does leave one less asset that  folks can leave for their children.

With half of those over the age of 65 expected to need long term care in the future, the numbers are staggering.  Many boomers don’t want to saddle their children with the worry and expense of caring for them as they age.  Reverse mortgages may indeed be one effective way to accomplish paying the heavy toll of long term care.

In addition to reverse mortgages, you’ll probably want to consider a long-term care insurance policy.  With this coverage, which costs a few thousand dollars a year, depending on your current age and health, you begin to make the investment necessary to protect your children in the future.

According to a new story in the Eerie Times-News of Indiana, many types of life and health insurance premiums can be deductible for taxpayers.  It is true that some insurance products come with tax advantages that can save you money when Uncle Sam starts dipping in your pocket.

We’ve written extensively about this here.  In a nutshell, you can deduct your premiums in many small business setting and also if your health care expenses are 7.5% or more of your gross income.  The bottom line with this and all other issues is to ALWAYS consult a CPA/tax advisor prior to making any decisions that have tax implications.

Today in article in The Gazette of Colorado Springs talks of new home health care businesses coming in to Colorado Springs.  This growing sector of the economy is a hot bed for entreprenuers and is expected to continue to grow as baby-boomers begin to age and need the services of home health aides.  Long-term care insurance can pay for such care, which can be costly.

Home health care agencies send workers to homes, nursing homes and retirement facilities to deliver nursing and medical care for people with chronic diseases, infants, the disabled, patients recovering from surgery or injury, and the aging. Agencies might also supply employees to assist with daily living skills such as bathing, dressing and transportation.

Today, home health care is a $54 billion business.  What’s astounding is that the home health care industry is expected to double in the next five years!  The reason: all 76 million of the aging baby boomers are beginning to retire and more and more will begin to need assistance at home.

In Colorado, costs are running about $125 per day on average.  As the patient ages, it may be necessary to move from the home to an assisted living facility.  The idea of home health care is to stay in the comfortable environ of your home as long as possible.

Cornerstone Advantage is the newest long-term care insurance offering by Genworth Financial and AARP. The biggest drawback about Cornerstone Advantage is that it has limited benefits compared to, say, Privileged Choice or Classic Select (both Genworth products as well). Let me elaborate.
With Cornerstone Advantage, you do have the positive features such as coverage for long-term care at home, in an assisted living facility or even in a nursing home. As our statistics show, only 12% of claims are paid for nursing homes, and we think this is important for consumers to know. Long-term care insurance is not “nursing home insurance” anymore!

Specifics on Cornerstone Advantage

So I decided to look into some specifics on Policy Form Series 7048, I.E. Cornerstone Advantage. One key disclaimer that pops out immediately is the fact that Assisted Living Facility rent, room and board is available only as a rider for Cornerstone Advantage. Make sure you keep this in mind if you are considering this coverage! The plan has many advantages and disadvantages, depending on your needs. If you are considering the coverage, continue reading for further analysis on CA.

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An article today in the El Paso Times of Texas, Common money mistakes, had an article today that gave Long-term care insurance an honorable mention.

“Former Pittsburgh Steeler coach Chuck Noll had a famous expression. He said champions aren’t champions because they do anything extraordinary, but because they do the ordinary things better than anyone else,” said Greg McBride, a senior financial analyst with Bankrate.com

The story goes on to inspire us that we should manage our financial portfolios with the same vigor as an NFL team. The article goes on to talk about how every family needs an emergency backup plan.

“What does your family or spouse need should you become disabled or lose your life?” Spiker asked. “If you wait until you’re not healthy, you may not be able to get life, disability or long-term care insurance.”

The point is: look into long-term care when you are healthy, not when things have deteriorated and you need it, for that is too late.