Costs of Long Term Care
“There are only four kinds of people in the world. Those who have been caregivers…those who are caregivers…those who will be caregivers…and those who will need caregivers.”
Rosalynn Carter, 1927 – 2023
What is Long-term care?
Long-term care is often required because of a physical or cognitive impairment.
Physical impairment
- Result of a chronic illness or frailty due to aging; can be managed with therapy, medication, and/or personal care, but typically cannot be cured.
- With progression, it compromises one’s ability to complete basic daily routines, called Activities of Daily Living (ADLs – Bathing, Continence, Dressing, Eating, Toileting, Transferring)
Cognitive impairment
- Deterioration or loss of intellectual capacity such as short or long-term memory, orientation, deductive or abstract reasoning, or judgment as it relates to safety awareness.
- With progression, it compromises one’s ability to interact safely with others and the environment.
Long-Term Care is often custodial care
Hands-on assistance or supervision provided formally (paid professionals) or informally (family or friends)
Can include assistance with instrumental ADLs, such as cooking, cleaning the house, paying bills, getting to and from appointments
Costs of Long Term Care
Average monthly living expenses according to the 2019 Department of Health and Human Services:
Everyone has a plan
- Is yours by choice or by default?
- Is it proactive or reactive?
- Is your plan full priced, or is it leveraged?
- Is it tax-efficient and tax-free?
- Does it transfer the risk out of your portfolio?
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