Question

Jane has a grandmother who was recently diagnosed with diabetes. Until now, she has been relatively healthy. Jane lives far away and her grandmother has no other living relatives to assist her. Grandmother has been looking into long-term care insurance because she is afraid that either she or her husband of 45 years (who has a family history of Alzheimer's disease) may need nursing home care at some point in their lives and she does not wish to exhaust all of their savings. She is also worried that because Jane lives so far away, she will not have anyone to help with difficult decisions or health care in the future. Jane is worried about the same issues.

1. Describe the benefits of long-term care insurance for Jane's grandparents. How likely are they to use these services, given their medical background and ages?

2. What could the grandparents expect to pay out of pocket if they must both go to a nursing home?

3. What are some strategies for planning for care of these persons as they enter advanced age with chronic diseases?

4. Are there any other options for Jane to assist her grandparents when she cannot be present to help them? If so, what?

Answer 1

1. The benefits of long-term care insurance (LTCI) for Jane's grandparents are many even if they are around 70 years of age and are in relatively good health conditions. They are living without any relatives to assist them and Jane is living in a faraway place. Since Jane's grandmother has recently-diagnosed diabetes and grandfather has a family history of Alzheimer's disease and has chances of getting it, they both will benefit from LTCI. There are chances that they might need long-term care based on their background. Any long-term care is too costly and will be a burden without LTCI, as long term care is not fully covered by any other private or other major medical insurance providers. Even Medicare and Medicaid covers only partial expenses for a limited number of days. An LCTI plan would decrease the emotional impact and financial burden of Jane's grandparents if they have to undergo long-term care with diabetes or Alzheimers. The LTCI will not only help them in their financial independence at the hour of need but also relieves Jane of caregiving job. The LTCI will allow them to choose a place of care like a nursing home, community, home, or assisted living facility. They can choose from a wide range of services like visiting nurses, home health aides, chores services, adult day care services, etc. So they will most likely use LTCI as they may need nursing home care at some point in their lives and do not wish to exhaust all of their savings.

2. The grandparents can expect to pay a really big amount out of pocket if they both have to go to a nursing home without LCTI. With an LCTI policy, the amount to be spent out of pocket will be a minimum or nil depending on the type of LCTI policy purchased.

3. The strategies for planning for the care of these elderly persons as they enter advanced age with chronic diseases are:

a) Purchase an LCTI policy of their choice.

b) Appoint Jane as a healthcare proxy.

c) Take appropriate preventive measures with a healthy lifestyle and diet.

4. There are many options for Jane to assist her grandparents when she cannot be physically present to help them. She can discuss with them about handling various matters like health. She can always send a medical insurance professional to discuss with them the advantages of LCTI. She can have occasional video calls with them and their care providers to get firsthand knowledge of their health status. She can also arrange an aide to help with their needs. She has many options to help them, but she should choose wisely and only with their consent.