The need for long-term care insurance for LGBT people
A worrying 36% of LGBT people say they would rather spend today than prepare for tomorrow. But what happens at the end of your life and you need medical or nursing care, be it at home or in a care facility? The answer could be long-term care insurance for LGBT people.
Listen Queer Money™ about long-term care insurance for LGBT people
Ryan Taylor tells us about long-term care insurance for LGBT people
According to AARP, those over 65 have a whopping 68% lifetime chance of becoming disabled and requiring long-term care. The average cost of long-term care is currently about $6,000 per month. That’s a lot! Long-term care insurance for LGBT people gives you the peace of mind that you will receive the care you need to date with the dignity you want.
Ryan Taylor is the founder of LGBT Financial, the leading resource for LGBT financial services. After graduating from Utah State University with a degree in International Business, Finance and Economics, Ryan lived and worked abroad for several years before settling in Salt Lake City. He has been a financial advisor at MassMutual Intermountain West since July 2015. Ryan founded LGBT Financial in February 2016 to help individuals and families from all walks of life make and plan for their most important financial decisions in a comfortable and safe environment.
Ryan is also the founder and host of the LGBT Show in Salt Lake City and a member of the Utah Gay and Lesbian Chamber of Commerce. Today, he explains the basics of long-term care insurance for LGBT people, from the ins and outs of coverage to the waiting period before coverage enters the reimbursement process. Ryan looks at the best time to purchase long-term care insurance for LGBT people and others, the percentage of people who qualify, and a hybrid product that combines long-term care insurance with life insurance.
Listen to today’s Queer Money™ to understand the benefits of having a financial advisor help you plan for the future. This likely includes long-term care for LGBT people. If you’re LGBT, then it’s just long-term care insurance.
Topics covered regarding long-term care insurance for LGBT people
The ABCs of LGBT finance
- Based in Salt Lake City, Utah (diverse, liberal oasis)
- Designed to be a comfortable and safe space for financial planning
- Founded in February 2016
Why Ryan founded LGBT Financial
- “Natural fit”
- Help from a financial planner who can empathize
- Plan with partner/family in comfortable space
The purchasing power of the LGBT community
- 971 billion US dollars in the USA alone
- The so-called “pink money” can be a double-edged sword
The Basics of Long-Term Care Insurance for LGBT People and Others
- Typically required at end of life
- Covers care at home or in a nursing facility
- The costs exceed inflation
- LGBT couples raising children are declining
- Long-term care is the second largest wealth destroyer in retirement after taxes
Ryan’s advice on purchasing long-term care insurance for LGBT people and others
- Wait too late, maybe not insurable
- Ideally between the ages of 45 and 55
- The sooner the better (lower costs, higher likelihood of being insurable)
The details of what long-term care insurance covers for LGBT people
- Activities of daily living
- Feeding/transferring yourself, walking, using the toilet
- Dementia, Alzheimer’s
- Care at home, in a nursing home or longer hospital stay (up to a certain amount)
The current cost of long-term care for LGBT people and others
- Average cost of $6,000/month
- Average entitlement between three and four years
- Some people make multiple claims over the course of their lives
The wait for long-term care for LGBT people and others begins
- Depends on the company and how the policies are structured
- Pay more for a shorter wait
- The longest period is six months
- Most choose 60-90 days
- Some companies reimburse waiting time
How Medicaid Fits into the Long-Term Care Picture
- Use long-term care insurance first and then Medicaid spending for eligibility
- Those without long-term care pay out of pocket until they qualify for Medicaid
An example of nursing care insurance premiums
- Ryan’s parents in their 50s, good health
- Individual care with couples discount
- Pay $3,000 per year
- The cheapest type of coverage, but costs go down when not in use
How sexual orientation affects premiums
- Lifestyle itself has no influence on premiums
- Some companies increase the price for consistent use of Truvada
- Inequality for the transgender community, industry leans toward unisex ratings
The percentage of people eligible for long-term care
- 1:4 Anyone who applied was approved (2015)
- People tend to apply too late (already in need of care)
The accelerated death benefit of life insurance to replace long-term care insurance for LGBT people and others
- Some life insurance policies include terminal illness insurance, others at an additional cost
- Make death benefits available (ie: six months to live)
- Not a long-term solution
- Can be included in both fully comprehensive and term life insurance
The nursing care insurance reimbursement process
- Refund Plan ($300/day)
- Send receipts
- The Company will review each issue
- The more you pay, the fewer companies you will fight
The tax consequences of care services
- Eligible health expenses (usually tax deductible)
- No taxable consequence
Possibility of a cash payment in the event of sudden death
- Some refund the premium
- No standard for death benefit
The three options for financing long-term care
- Retirement funds
- Independent nursing care insurance
- Couple care with life insurance (hybrid)
The advantages of the hybrid product
Provides death benefit and access to long-term care
Makes long-term care insurance more affordable
Unlocks death benefit if necessary (real living benefit)
Whatever is left over is considered a death benefit in the event of death
Very popular with singles in the LGBT community