Family Member Pays Part of LTC Premium

Facts:

Single woman, aged 59 has accumulated $200,000 in assets.  At age 67 will receive moderate income from Social Security and is still working.  Wants to remain at home for as long as possible if care is required.  Lives in Ohio, daughter lives in Maryland.  Daughter earns significant income but is concerned that if her mother were to require care, she would not be able to take time off from work to provide care. Mother resistant to purchasing adequate coverage because she felt she could not afford the premium.

Solution:

Long-term care insurance policy, $200 per day benefit for in-home care and facility care to provide for most of the cost of care, 5 year benefit period, 5% compound inflation

Outcome:

Daughter and mother decided to split the cost of the policy, making it more affordable for the mother, and providing the additional financial and caregiving support that the daughter would need if her mother required care putting her in a position to supervise care rather than provide care.