Posts tagged with "Pittsburgh"

Eldercare

How Much Do You Really Know About Extended Care?

 

 

How Much Do You Really Know About Extended and Eldercare?

Separating some eldercare facts from eldercare myths.

 

How much does eldercare cost, and how do you arrange it when it is needed? The average person might have difficulty answering those two questions, for the answers are not widely known. For clarification, here are some facts to dispel some myths.

 

True or false: Medicare will pay for your mom or dad’s nursing home care.

FALSE. Medicare is not extended care insurance.1

Medicare Part A will pay the bill for up to 20 days of skilled nursing facility (SNF) care, but after that, you or your parents may have to cover some costs out-of-pocket. After 100 days in a SNF, you will have to cover all costs out of pocket. The only way to “reset the clock” for Medicare coverage of these services is if the patient can somehow go without skilled nursing care for 30 or 60 days or if they require a hospital stay of three full days or longer.1

True or false: A semi-private room in a skilled nursing facility costs about $35,000 a year.

FALSE. The median cost of a semi-private room is now $89,297. A private room in an assisted living facility has a median annual cost of $100,375 annually. A home health aide could run you up to $4385 per month for full-time care. Even if you just need someone to help mom or dad with activities of daily living (ADLs), such as eating, bathing, or getting dressed, the median hourly expense is not cheap: non-medical home aides run about $23 per hour, which at 10 hours a week, means nearly $12,000 a year.2,3

True or false: Only around 40% of Americans aged 65 and older are expected to need extended care.

FALSE. Someone turning 65 today has a 70% chance of needing extended care. That means that by 2030, it’s estimated that around 24 million Americans will need extended care.  This is double the current number already receiving care.4,5

 True or false: The earlier you buy extended care insurance, the more manageable the premiums.

TRUE. Younger policyholders may pay lower premiums.  The best time to consider extended care insurance is when you are healthy. While you may be paying a premium for a longer amount of time, the expense may pale in comparison to paying for unexpected medical costs out of pocket.6

True or false: Medicaid can pay nursing home costs.

TRUE. The question is, do you really want that to happen? While Medicaid rules vary by state, in most instances, a person may only qualify for Medicaid if they have no more than $2,000 in “countable” assets ($3,000 for a couple). A homeowner can even be disqualified from Medicaid for having too much home equity. A primary residence, a primary motor vehicle, personal property, and household items, burial funds of less than $1,500, and tiny life insurance policies (with face values of less than $1,500) are not countable. So, yes, under these economic circumstances, Medicaid may end up paying extended care expenses.7

 

A little strategizing now could make a big difference in the years to come. Call or email us today to learn more about ways to pay for extended care and discuss your choices. You may need to find a way to address this concern.

 

 

Traci L. Kovacic is a registered representative of and offers securities through The O.N. Equity Sales Company, Member FINRA/SIPC, One Financial Way; Cincinnati, OH  45242; (513)794-6794
Riverfront Financial and The O.N. Equity Sales Company are unaffiliated companies

 

Citations

  1. Medicare.gov, March 26, 2020
  2. SeniorLiving.org, June 24, 2020
  3. APlaceForMom.com, May 11, 2020
  4. AmericanActionForum.org, February 18, 2020
  5. LongTermCare.gov, July 23, 2020
  6. Forbes.com, April 17, 2020
  7. LongTermCare.ACL.gov, July 23, 2020

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

 

September is Life Insurance Awareness Month!

 

It’s time for your life insurance check-up. 

September is National Life Insurance Awareness Month, so it’s a great time to review your coverage.

If you don’t have any life insurance, you’re not alone. Life insurance is one of those “someday” things for many people – but the cheapest time to buy it is probably today.

There are two kinds of life insurance: term and permanent. Additionally, there are three kinds of permanent life insurance: whole, universal, and variable.

How do these forms of life insurance differ, and how do you find out which type of coverage is right for you?

The way to find out is to look at where you are in life, so that you can assess your current insurance needs. Have you reviewed your insurance lately? Don’t think you need life insurance? If so, consider the following potential factors that may make it a good idea:

*You have a spouse or partner

*You have children

*You have an aging parent or disabled relative who depends on you for support

*Your household depends heavily on your income

*Your retirement savings or pension won’t be enough for your spouse or partner to live on should you pass away

*You own a business, either solely or with partners

*You have a substantial joint financial obligation, such as a personal loan for which another person could be legally responsible after your death

In any of these circumstances, you may require life insurance. If you have coverage, changes in your life may demand an update.

 

The affordability of life insurance may surprise you. Many people think it is expensive, and so often, it is not. The non-profit insurance education group Life Happens recently

conducted a study about this. More than half the millennial’s contacted for the study thought a $250,000 term life policy would cost $1,000 or more per year. The reality: the a

average annual premium is about $160.1

Life insurance is intended to help your loved ones financially after you die.

The proceeds from a life insurance policy may help your spouse, partner, or family members manage finances if they have to adjust to life without your income.

The death benefit may also be used to meet funeral costs and other final expenses, which may run into the tens of thousands of dollars.

 

Are you still unsure about buying life insurance, or do you suspect that your current insurance coverage needs to be updated?

Please contact us at (412) 837-2400 or Tkovacic@Riverfrontfin.com  and we will be happy to assist you in evaluating all the factors and help you choose an appropriate policy.

 

 

Riverfront Financial awarded Best Insurance Agencies in Pittsburgh 2020

Riverfront Financial awarded Best Insurance Agencies in Pittsburgh 2020

 

Citations.

1 – forbes.com/advisor/insurance/how-much-life-insurance-do-you-really-need/ [8/7/19]

How Much Money Will You Need for Retirement?

 

How Much Money Will You Need for Retirement?
It depends on your goals, time horizon, and risk tolerance.

Retirement

 

“Will I outlive my retirement money?”

 

That’s one of the top fears for people who are starting to prepare for their retirement years.

So I have to chuckle a bit when I see headlines that say, “Here’s how much money Americans think they need to retire comfortably.”$1.9 million is the number, according to a nationwide survey of 1,000 employed 401(k) participants by a well-known financial services company. In 2019, the same survey reported the number was $1.7 million. But this year’s pandemic increased the total by $200,000.2   Is $1.9 million a realistic figure for retirement? It’s hard to say. The survey didn’t ask participants how they arrived at that figure or what information they used to draw that conclusion.

Determining how much money you need in retirement is a process. It shouldn’t be a number that you pull out of thin air.

The process should include looking at your current financial situation and developing an approach based on your goals, time horizon, and risk tolerance. The process should take into consideration all your potential sources of retirement income, and also may project what your income would look like each year in retirement.

A significant figure like $1.9 million does little good if you’re uncertain what it means for your retirement years. We can help you develop a retirement strategy and show you investment ideas designed to help you pursue the retirement of your dreams.

 

Contact us anytime at 412-837-2400 to set up a free financial review.

Traci Kovacic Tkovacic@Riverfrontfinancialpgh.com

Joe Kovacic TKovacic@Riverfrontfinancialpgh.com

 

 

 

Citations.
  1. FoxBusiness.com, August 4, 2020
2. Pressroom.aboutshwab.com, August 4, 2020