What You Need to Know About Long Term Care Insurance

What is long term care insurance?

Long term care insurance is a type of health insurance designated to provide care for individuals living with a chronic illness or injury. Long term care insurance provides both medical and non-medical assistance to the insured, whether in a care facility such as a group home or a nursing home or living in their own home and in need of help with their daily care. It differs from other types of care that are covered by traditional insurance coverage because it pays for help with custodial care, or assistance with tasks of everyday living that most people can do for themselves.

It is often a difficult task to begin thinking and talking about long term care insurance. We don't like to think of ourselves as no longer independent and able to care for ourselves. However, just as with car insurance, life insurance and home owner's insurance, long term care insurance is an extremely important piece of security and protection for you and your family. You may never need long-term care, but when a disabling injury or illness affects your life it often results in long term effects that prevent you from carrying out your activities of daily living such as bathing, dressing, and using the bathroom. This is when it is often necessary to have ongoing help. It can be burdensome or even impossible for family members to provide this level of care on a long term basis. When this is the case, other long term care options may be the most logical choice for your needs.

Is Long Term Care Insurance Expensive?

Depending on the level of care that is needed and the length of time the care is needed, long term care can become extremely expensive. The costs can include supplies and medications, nursing care or direct care help, adaptive equipment, physical therapy equipment, and other needs that are not covered by traditional health insurance. These long term care needs may be a temporary situation, but are generally health care needs that the insured well have for the rest of their lives.

Like all types of insurance, it is possible you may never have a claim against your long term care insurance policy, but if chronic illness or injury leaves you unable to independently care for your activities of daily living. It is expected that this year over 9 million adults in America will need long term health care. That number is expected to rise as high as 12 million by the year 2020. As many as 70 % of elderly adults who need long term care will receive it at home from family or friends. Long term care insurance will cover the costs associated with this type of at home care.

Of adults over the age of 65, there is a 40% chance they will need to consider nursing home care. About 10% of the people who enter a nursing home will wind up staying there for five years or longer. By having long term care insurance, you don't need to worry about whether your Medicare or primary health insurance will pay for care in the nursing home. Your long-term care insurance will cover these expenses.

What About Medicare?

Many seniors depend upon Medicare to help pay for their health care costs. However, Medicare does not pay for most long-term care. Medicare will pay for medically necessary skilled nursing care whether in facilities or home care, but you must meet eligibility requirements and most other options must be paid for by different means, such as long-term care insurance.

However, not all long term care insurance is the same. Some will pay only for nursing home care, while others will pay for a wide range of services and cares such as informal home care, adult day care centers, assisted living services or facilities, medical equipment and others.

When you are considering different long-term care plans, it can be very helpful to think about the different activities and functions you may need help with. You should consider what future needs you may have, especially any that are based on conditions or situations you are already dealing with. Consider activities of daily living such as bathing, dressing, eating, toileting, and moving in or out of bed, a chair or a wheelchair. Next, think about additional services you might need help with like shopping, preparing meals, housework and laundry, getting to appointments, handling finances and bill paying, using the telephone and home maintenance and repair work. Further, consider whether you will need help with remembering to take your medications, monitoring your diabetes, using eye drops or ear drops, getting oxygen or caring for a colostomy bag or a bladder catheter. These are all areas that a long term health insurance plan can help you pay for.

Tips Sheet on How to Collect Personal Property of California Decedents by Affidavit and Avoid Probate

A powerful tool to collect bank and brokerage accounts of a relative who has died is California Probate Code §13100. This law provides for the collection and transfer of personal property of a decedent by affidavit or declaration without probate court or any other legal action.The affidavit/declaration is made by the decedent's successors, those persons succeeding to the property by will or intestacy.

Requirements

1. This procedure is for personal property only, not real property. Bank and brokerage accounts are personal property.

2. Personal property and real property owned by decedent cannot exceed $150,000. Property held in joint tenancy and trust are excluded from the total. Automobiles, boats and mobile homes are also excluded from the total.

3. If the estate of the decedent includes any real property in California, the affidavit is accompanied by an inventory and appraisal of the real property.

4. Original death certificate.

5. 40 days have passed since death.

6. No probate petition has been filed in probate court for decedent's estate.

Why this is so powerful of a tool

    The affidavit is a document. It is not filed with the court, just submitted to the financial institution.
    A notary public's certificate of acknowledgment identifying the person executing the document is reasonable proof of identity of the person executing the affidavit. Personal appearance by the successor is not needed.
    If the financial institution holding the decedent's property refuses to pay, deliver, or transfer any personal property within a reasonable time, the successor may compel compliance by filing a complaint in Superior Court. The Successor is allowed to recover reasonable attorney fees.

Intestacy Distributions of Personal Property, i.e. no Will and no surviving spouse, how distributions will be decided

1. Real property passing, no surviving spouse or issue and predeceased spouse has died within 15 years

For purposes of distributing real property if the decedent had a predeceased spouse who died not more than 15 years before the decedent and there is no surviving spouse or issue of the decedent, the portion of the decedent's estate attributable to the decedent's predeceased spouse passes to predeceased spouses intestate heirs.

2. Intestacy Distributions of Decedent's personal property, no surviving spouse or issue and real property with predeceased spouse who has died more than 15 years

    to the decedent's parent or parents equally.
    If there is no surviving parent, to the issue of the parents
    If there is no surviving parent or issue of a parent to grandparents equally
    If there is no surviving parents or grandparents to the issue of those grandparents
    If there is no surviving parent, grandparent or issue of a gr andparent, but the decedent is survived by the issue of a predeceased spouse, to that issue
    If there is no surviving issue, parent or issue of a parent, grandparent or issue of a grandparent, or issue of a predeceased spouse, but the decedent is survived by next of kin, to the next of kin in equal degree