How much do long term care services cost?

In case you didn't know, I'm Filipino. I migrated to the US, when I was a teenager. In our culture, there is no such thing as long term care insurance because just as it is common sense for parents to take care of their children, Filipinos are accustomed to having grandma or grandpa live with them as they age. In other words, the young will take care of the old. Yes, that is the "Pinoy" version of Long Term Care insurance right there... children and loved ones taking care of the elderly.

I personally experienced this with my maternal grandmother. Our dear Lola Venus was a witty, strong, vibrant and loving grandma. She took care of me and my 3 other siblings while my parents were working, studying and just figuring out how to be parents! When Lola Venus was in her early 60s, she tripped and fell while shopping. That fall caused her to break her hip. She had hip surgery. That hip surgery caused many complications, eventually making her unable to walk without aid or a wheelchair. In an instant, she went from this super independent, strong and vibrant grandma to someone needing long term care.

Lola Venus had a rental property for college students as well as a catering business. She did not have health insurance. She did not have long term care insurance. She did not have any insurance at all! After her fall, she no longer could keep the rental and catering businesses. Every doctor visit, medication, surgery and other related medical expenses were paid for by her own money and eventually by family. My mother, siblings and I as well as extended family members all helped when we could.

I was already in the United States working a full time job and going to school at night when most of this happened. From afar, all I could do was pray, send money and feel guilty about not being able to physically help. The burden and stress of physically as well as emotionally taking care of Lola Venus fell on my mom's shoulders as well as my other siblings still in Manila at that time. I went back to Manila when she passed away. I remember taking all the money I have saved and contributing it to pay for her hospital bills as well as funeral expenses. Family members who could help financially also contributed. No, we did not inherit any money. When I returned from that trip, my net worth was back to where it was when I first immigrated to the United States, ZERO.

If you are curious about how much it cost when a family member gets sick and require extended care, my short answer is too much.

One of the many carriers we work with, Mutual of Omaha, also a leading Long Term Care insurance provider does a regular Cost of Care Study for the US. According to Mutual of Omaha: "The study is based on data collected by Long Term Care Group (LTCG), a leading provider of long term care data. LTCG examines the cost of a variety of long term care services, including those received at home, in an assisted living facility and in a nursing home."

I am only allowed to share the latest 2021 version with licensed advisors but with permission, I am able to share a small clip here for licensed advisors and hope that it gives you an idea, as a financial advisor when helping your clients plan for what could be inevitable for some.

If you would like a copy of the full Mutual of Omaha's Cost of Care Study 2021, email me at peachie@peachinsurance.net or call me at (904) 539-9779. The copy is for licensed advisors only.