Concerned about the costs of long-term care? Mike Wells: Concerned about the costs of long-term care?

Here is a common fact pattern: you have been employed with a good job, and you have a fair amount of assets, a good portion of which is the equity in your homeplace. You are concerned about the prohibitive costs of long-term care, especially protecting the equity in your homeplace for your children. What should you do?

You should purchase a solid long-term care insurance policy (ltci) when you can. The cost of premiums is much higher than health insurance although still affordable, but they are much less overall than the significant cost of long-term care, which statistically is likely coming. People do not learn of this, however, until it is often too late to purchase a solid long-term care policy.

WHO should purchase? Seventy percent or more of senior citizens are going to require long-term care. You should purchase a policy that provides coverage if you later may need the assisted living or nursing home care. And before you are likely to experience significant dementia, physical immobility, or other serious debilitating health challenges regarding your vision or hearing.

WHEN should you consider purchasing long-term care insurance? Many who are approaching their mid-40s and early 50s check the costs of long-term care insurance. If you are aware of genetic tendencies, the earlier you purchase long-term care insurance, the better.

The annual cost of such a policy can be costly, and consequently many people do not purchase a policy. A key component of the analysis, however, should include this question: compared to what? Way too many people ask the first question: how much is the monthly premium for long-term care insurance? But very few ask the latter question.

Do this: Google "How much does long term care cost annually in North Carolina?" Nearly $110,000 on average, and this does not include all the costs relative to your medical care and necessary supplement insurance products. A full estimate in our geographical area is approximately $150,000 annually.

HOW is the necessity of long-term care determined?

Are you unable to perform two of the six so-called activities of daily living (ADL'S):

Bathing - are you able to bathe yourself?

Continence - are you able to control movements of the bowel and bladder?

Dressing - are you able to dress yourself?

Eating - are you able to feed yourself regularly?

Toileting - are you able to care of your bathroom needs on your own?

Transferring - Are you able to get in and out of a motor vehicle, get out of a chair or couch, or to get in and out of your bed without assistance?

If you have trouble with two out of the six of these activities, you will likely be able to qualify for many long-term care policy benefits.

Additionally, Alzheimer's or cognitive impairment may be a trigger.

If your options are much more limited, consider discussing your status with a long-term care/elder law attorney. Also consider contacting the North Carolina Bar Association Lawyer Referral Service (919-677-8574). A knowledgeable attorney in this area of the law will consult with you for 30 minutes for $50 to help you outline the broad issues you face. But the solutions to your likely legal solutions will be more costly if you do not have a solid long-term care policy in place to reduce your recurring care costs.

However, the first step an attorney will tell you to take is to execute a financial power of attorney that includes the extensive changes in the elder law statutes made in 2018. This will provide much more flexibility with changing circumstances and your other legal planning options as well.

Remember: An informed choice is a smart choice.

Mike Wells is a partner with Wells Law, PLLC in Winston-Salem. His email address is [email protected] and his telephone number is 336.283.8700. His legal column has been published continuously since 2003.