April 25, 2023 —“Will you still need me, will you still feed me, when I’m sixty-four?” goes the well-known Beatles song.
While 64 is relatively young in today’s world of people living longer, the song written by 80-year-old Paul McCartney at the tender age of 14 evokes a question most of us will ponder at a certain age. Who will care for me when I’m old?
What Is Long-Term Care?
As defined by the National Institute on Aging, long-term care is a variety of services designed to help people live as independently and safely as possible when they can no longer perform everyday activities (e.g., bathing, dressing, eating) by themselves. These services might also include nursing care, physical therapy, transportation, and more.
Who’s Going to Need It?
Consider this from the U.S. Department of Health & Human Services and the National Institute on Aging:
- 68 percent of people 65 and above will need long-term care.
- Women are more likely to need long-term care than men, as they tend to live longer, needing roughly 3.7 years compared to 2.2 for men.
- Those with poor diet and exercise habits, smokers, heavy drinkers, etc. are more likely to need long-term care.
- Those with a family history of disease or certain medical conditions are more apt to need long-term care.
- Single people are more likely to need long-term care than those who are married.
At What Cost?
Perhaps the most pressing question about long-term care is how much does it cost? The answer varies dramatically depending on the kind of care needed, the length of time it’s needed, the setting in which it is provided (in-home or at an assisted living/skilled nursing community, for example), geographic area, and several other factors.
For many people, long-term care is paid out-of-pocket from personal resources (savings, pensions, investments, stock income). Other sources of funding are some government programs, long-term care insurance, and alternate options such as reverse mortgages and life settlements.
Click here to calculate approximate long-term care costs and services in your area.
Is Long-Term Care Insurance Worth It?
Given the above statistic that almost 70 percent of people over the age of 65 will need some level of long-term care, purchasing an insurance policy is, for many people, a sound expenditure that can offer priceless peace of mind.
However, according to an article in Kiplinger Personal Finance, when long-term care insurance was originally created in the 1970s, it didn’t account for how long people would live and how few of those policies would lapse. As a result, almost 90 percent of providers stopped selling this type of insurance, and costs have become prohibitive. Often, policy owners end up with fewer benefits in order to afford it.
Continuing Care at KaLex and Insurance Compatibility
But there is good news from Kendal at Lexington.
Kendal at Lexington is a Life Plan community, where residents’ long-term care is part of their one-time entry fee and monthly fees, save for inflationary adjustments.
This means that monthly fees do not increase based on the level of care residents transition to.
What’s more, because our Life Plan fees factor in long-term care, some of them are tax-deductible for many residents.
Works with Long-Term Care Plans, too
For the roughly half of our residents who have long-term care insurance, our 60-day modified (Type B) agreement may be the best choice because it is compatible with these policies.
The Type B contract covers independent living, assisted living and the first 60 days of nursing care in the Borden Health Center. After 60 days, residents pay a per diem rate, at which time their long-term care insurance begins to offset the fee-for-service costs.
Learn more about long-term care insurance compatibility with continuing care and pricing at Kendal, or contact us today at 540-463-1910.