Happy International Self-Care Day 2023! 🧘♀️🛀 🕯️📔
Plus, We're Never Gonna Mean Girl Our Way Out of Menopause...
Fellow Empresses,
How the hell are you? It’s International Self-Care Day. Huzzah!
And while I totally want to walk you through my frugal Empress version of Gwyneth Paltrow’s “everything shower,” a critical part of self-care begins with thinking about long-term care... And so, we're going get some deep wisdom from our resident LTC expert, Kelly Augspurger, so that you have all the choices and full financial sovereignty throughout your Empress Age and on into your glorious Crone Barbie years, lol.
…it can feel like a scene right out of Mean Girls in certain menopause circles these days. It’s straight-up high school. Tina Fey could do a musical—complete with jazz hands! 😂
But first, I feel like when it comes to peri/menopause... At least right now, we all recognize there's no one solution, no silver bullet that's going to solve all the symptoms. There are over well over 100 that are vast and varied, depending on your unique circumstances, your medical history, and your body chemistry. And so, a different constellation of solutions is going to work for different women and not everything is always going to fall within the bounds of traditional Western medicine because sometimes traditional medicine is slow to catch up or the FDA doesn't have the right categories or researchers haven't bothered to study us. Here's one of the best explainers I've seen lately about the complexity of things from Dr. Susan Hardwick-Smith, MD:
That being said, it can feel like a scene right out of Mean Girls in certain menopause circles these days. It’s straight-up high school. Tina Fey could do a musical! Never mind the FDA just approved an erectile dysfunction solution for men that’s basically putting hand sanitizer in your va-jay-jay... ugh! The more voices going, “Hey, wait just a minute, there! That does NOT sound OK,” the better.
Also, the supplements market is a TOTAL wild west right now with 89% of products having inaccurate labeling of some kind—so we do need to be better advocates for each other and about what works for us as individuals, but also about how to get better labeling, with greater transparency, and how to source better, higher-quality ingredients that address the intended issue. Because the GOAL here is ultimately to FEEL better throughout this hellish messy middle. So, let’s be there for each other... and solve this...instead of being petty. I DO love musicals... but Mean Girls has already won so many Tonys... I’m not sure we need to reenact it daily.
Now, on to the good stuff. More of our Menopause & Money Series! Remember how women are 80% more likely than men to spend retirement in poverty? Well, this just in… from our friend, Kelly Augspurger…
No retirement plan is complete without a plan for long-term care (LTC) aka extended care. Many Americans will find themselves living into their 80s, 90s, or even 100s, which means there’s a good chance that they may need some LTC. What is LTC? Does it mean you’re a decrepit old person who is completely bed bound? No! Long-term care refers to the assistance a person needs throughout the day to do everyday tasks that we often don’t even think about. These are called Activities of Daily Living (ADLs); they are transferring, toileting, bathing, dressing, eating, and continence. It also could mean you need supervision due to a cognitive impairment like Dementia, Alzheimer’s, or Parkinson’s. You may need LTC due to an accident, illness, or due to natural aging. As we age, we tend to lose strength, mobility, and flexibility. Is it reasonable to assume that as you age, you may need some help like taking a shower safely and getting dressed? I think so!
Women are more likely to need more care than men because we typically live longer and are oftentimes caregivers first. We can’t control the risk of needing care, however, we can minimize the consequences (physically, financially, mentally, and emotionally) if we need LTC. To stay in control of quality care options and protect our family and finances, we need to have a plan! What’s a basic LTC plan? It consists of determining who will provide care, where you want to receive care, and how you will pay for care. LTC insurance (LTCi) comes into the equation because it helps pay for care thereby protecting your family, income, and assets, and helps you stay in control of your care options. LTCi is not your LTC plan, rather it funds your plan.
What should you consider when thinking about purchasing an LTCi policy?
Health and medical history are very important when applying for LTCi. If an advisor or agent gives you a quote without asking you detailed health questions, run! You want to make sure you apply at the right time and with the right insurance company. To know if you’re eligible for coverage and what coverage is right for you, you need to answer health questions upfront before looking at any options. I have an online prescreen form that my clients fill out before we talk about options.
The younger and healthier you are when applying, the more options you have and the less expensive it will be.
Important components of a policy:
Daily or Monthly Benefit – this is the maximum benefit you can use each day or month. It might be $5k/mo (range available is typically $2k-$15k/mo)
Benefit Period – how long benefits last, e.g., 3 yrs, 4 yrs, or even up to lifetime benefits (lifetime benefits are only available with a couple of carriers). Think of it as a pool of benefits. If you don’t use your full monthly benefit, the remainder stays in the policy and elongates your benefit period, e.g., if you have a $6k monthly benefit for 3 years but only use $3k/mo, then your benefit period could last 6 years instead of 3 years.
Inflation – This is a rider (add-on) that allows your daily/monthly benefit to grow over time to keep up with the cost of care (3% compound inflation protection is the most common). This is super important, especially if you’re under the age of 70.
Elimination Period (EP) – aka waiting period – the amount of time you are self-funding your care until benefits begin. The carrier will have a calendar day or service day EP.
Partner/Spousal Discount – If you’re married or living with a partner, you can get a discount when applying.
Shared Benefits – This is a rider if you’re married or are living with a partner, that allows you to share benefits. This is a great way to get more coverage without paying for a higher daily or monthly benefit amount or a longer benefit period. If you use all your benefits, you can dip into your spouse’s benefits or there may be a 3rd pool of money you can access.
3 main types of LTCi policies:
Traditional (stand-alone) – pure insurance, the most effective way of getting the most coverage for the smallest premium. Generally, you need to be healthier to qualify for these than a hybrid. Do not have guaranteed premiums, however, they are priced much more accurately than they were years ago, so the chance of a future rate increase is much smaller compared to policies issued 15+ yrs ago. Allows for inflation protection, shared benefits, and a lot of customization.
Hybrid aka linked benefit or asset-based – LTC insurance + added benefit (death benefit from life insurance or cash value from annuity). If you don’t need care, there’s a benefit remaining for your heirs. Generally, can be less healthy than traditional LTCi policies. Allows for an extension of benefits beyond the death benefit, inflation protection, and shared benefits.
Life insurance policy with LTC rider – allows you to access death benefit in life policy if you need care. No inflation protection or much customization.
Depending on the insurance company, there may be different ways to pay premiums, e.g., pay every year or over a limited amount of time (5, 10, 20 yrs, or even a lump sum).
How much coverage should you get? There’s no set answer. Each person’s situation is unique. A policy should be both meaningful and affordable.
Work with an LTC Insurance Specialist who has a CLTC® (Certification in Long Term Care) designation – they will know how to guide you through this process and should have a variety of different insurance companies that they work with.
If they have just been divorced or downsized out of a job, are there affordable options they should look at?
If just recently out of a job, probably not the best time to buy a policy. Need to be able to pay premiums for the long term. Some premiums require monthly/annual payments, others allow you to do a limited pay (over 5, 10, 20 yrs, or even a lump sum).
Smaller starter policy - e.g., $3k monthly benefit, for 2 or 3 yrs with 3% compound inflation protection.
If they are independent contractors or looking at living a more consulting-driven life—like with https://www.portfoliolife.com, how can they craft an insurance portfolio that protects them as they age? And includes LTC?
Insurance is all about transferring risk and consequences to the insurance company. How much risk and consequences are you willing to take on yourself and how much do you want to transfer? Crafting an LTC plan will be different for each person because we all have different family histories, finances, preferences, risk tolerances, personal experiences, etc. To protect you as you age, you can buy an LTCi policy when you’re healthier and younger and it will protect you as you age because you lock in your health insurability when you buy the policy. If your health changes in the future, the insurance company can’t raise rates because you’ve developed a health condition. If you wait until you’re in your late 60s or 70s and now have a slew of health issues and medications, it will be more expensive, OR worse you may not be eligible for coverage. Including inflation protection in your LTCi policy is important and is also a good way to protect you as you age so your coverage grows over time.
You can have multiple LTCi policies. You might buy a basic “starter” policy in your 40s and then as you make more income and accumulate more assets, you might buy another policy with more robust coverage later.
If they have chronic conditions, are there still ways of affordably obtaining coverage?
Stability is the name of the game. Since health and medical history are important, if there are chronic conditions, they need to be stable. Insurance companies are looking at medical records to see if you’re struggling with a condition and don’t have it under control, e.g., you’ve changed medications and doses frequently for a condition because it’s out of control. If you’re unstable, you likely won’t get coverage now. It could be a decline or postponement.
For example, if you have arthritis but it’s mild or moderate and it does not keep you from doing ADLs, you could be eligible for coverage.
If you have chronic conditions, you might not be eligible for the best health class rating but still may be able to get coverage. This means it will be more expensive than if you were in the best of health. Finding the right balance between meaningful coverage and affordability is key. This might mean buying a policy with a $3k monthly benefit for 3 years instead of a $5k monthly benefit for 4 years.
Who is LTCi NOT a good fit for?
You have to be health and wealth eligible
If you don’t have a good predictable income and some assets (either a home or a nest egg or both to protect)
If you rely only on social security income
If you currently need care or are not healthy enough to qualify
How much does LTCi cost?
It’s like asking how much a car costs. Do you want a Ford Focus or a Range Rover? There can be huge differences in the prices of policies depending on a variety of factors:
Health, age, gender, monthly benefit, benefit period, inflation, shared benefits, elimination period, and other riders.
Women pay more than men (could be 30-40% more)
Case Study:
a). 50 yr old single female in excellent health. Buys policy that has a $4k monthly benefit for 3 years with 3% compound inflation protection (allows the policy to grow over time) and a 90-day Elimination Period. Monthly premium = $216
b). 50 yr old single female in average health buys the same policy as above. Monthly premium = $254.
c). 50 yr old single female in challenged health buys the same policy as above. Monthly premium = $317
If this 50 yr old female wants more monthly benefit and a longer benefit period, her premiums would be more.
Discounts if you’re married/live with a partner and if your spouse is applying too.
Want to see if LTC insurance is the right fit for you?
I think the thing to consider is how to design the life you want NOW given your specific circumstances. If you want the Golden Girls experience at home with all your friends and family as you grow older, how do you tee up that outcome sooner rather than later so that you’re not anxious and stressed about it when you get there?
I'm so grateful to Kelly for weighing in on all the nuances and questions. If you want to reach out to her directly, you can do so at kelly@steadfastagents.com.
Again, it may not feel sexy, but there’s nothing better than having your besties by your side to laugh with as you venture down the midlife road. Until then, remember… you are wise AF!
Yours in Grandeur,
p.s. In honor of Self-Care Day, our friends at Winona are also having a Christmas in July Sale… 25% off Ho-Ho-Hormone Treatment!🎅 😂 Use the code: XMASJULY25 at: https://bit.ly/3OecNNE until July 28th!
*As an Amazon Associate, The Empress may earn from certain purchases, at no cost to you.
My hubby and I are my father-in-law's long term plan. He moved in with us two years ago - it hasn't been easy, but we're all happy. I'm hoping to stay healthy enough to remain independent. So far, so good, and my 80 year old mother is doing just fine. But my son has already announced that we're moving in with HIM if we get too frail to take care of ourselves... I'm not sure he knows what he's agreeing to, though, he doesn't see the scary/messy/frustrating side of caretaking. Rooming with my sister might be another option. Medicare only pays for two visiting nurse visits per week, though....
GREAT info, as always! I'm looking into LTC now :)