Sagewell Newsletter | Spring 2022
Long-Term Care Planning - Why facing it without fear is the only answer
A recent study of how well Americans understand long-term care planning uncovered what most of us already know—we’re confused about it.
Of the 350,000 people who turn 65 every year in this country, two-thirds will need long-term care assistance and almost a third will need it longer than five years. Yet most families avoid talking about the subject until there is an urgent need. In fact, even between spouses, only a little over half of us are discussing it and barely over a third of adult children have a conversation with their parents. If we do manage to broach the topic, we often leave out the all-important question “how are we going to pay for an extended care need”?
Jeff Wright, co-founder and COO of Sagewell Financial says “helping people face the emotionally and financially interconnected topics of aging is important because avoidance is always what comes at the highest cost to families. We understand that fear is behind the resistance so we’re helping people confront important topics, like long-term care, by approaching them practically, but with compassion.”
“Helping people face the emotionally and financially interconnected topics of aging is important because avoidance is always what comes at the highest cost to families. We understand that fear is behind the resistance so we’re helping people confront important topics, like long-term care, by approaching them practically, but with compassion.”
Jeff Wright, co-founder and COO of Sagewell Financial
So why do we go to great lengths to side-step this critical topic? Well, it can be uncomfortable. And scary. But as with most difficult subjects, confronting it is always the better answer, regardless of what we find. Here’s an honest look at some common questions I asked leading long-term care specialist, Meredith Pensack.
When should someone start looking into long-term care planning and can it be too late?
M: “When someone is financially able to plan for the future is the best time to explore the subject. Today people are probably as healthy as they will ever be. The option of getting LTC insurance might be off the table in the future due to health changes. The plans require that people be in reasonably good health. I’ve helped people as young as early 30’s (due to family history) and as old as late 70’s.”
What would you say to people who aren’t sure if they need to look into long-term care insurance?
M: “Anyone with financial resources to protect should at least consider a formal plan that addresses an extended care need. It’s the most likely thing to happen, but the least likely to be planned for. Commonly people who are “in the middle” financially look into coverage, but I’ve assisted very wealthy people as well. Individuals without savings may have to rely upon Medicaid, the safety net that is designed for those without financial resources. Medicaid does provide for long term care, but most commonly in a nursing home after spending down to poverty level. Medicaid wasn’t designed to pay for on-going home care or care in Independent or Assisted Living.”
How should someone go about finding a long-term care specialist?
M: “When selecting a professional to assist in looking into long term care insurance options, it’s important to find a broker who can represent different companies and plans; make sure that they’re not just tied to one company. The agent should be able to write both traditional as well as hybrid long term care insurance policies.”
Long-term Care Planning Considerations
Regardless of your situation, financial or otherwise, you can make a long-term care plan. If long-term care insurance turns out to be unaffordable or unavailable to you, you may be able to pay for it using an old life insurance policy with cash value. You’d have to call the insurer to inquire. Or maybe through qualifying for Medicaid you could receive the care you need. There is even the chance you may never need long-term care, but even if you don’t, having a plan will give you confidence and peace of mind. Your solution may look differently than you envisioned but planning to manage your later years will be a priceless gift to your family, and most of all you.
Meredith is the owner of Boston-based Long-Term Care Insurance Planning and is available to write long-term care planning policies in any state. To learn more, visit her website LTCiplanning.com.
Armchair Travel—Warning: This can be addictive!
Maybe it’s the pandemic, the weather, the expense, or all three of those things that have made traveling feel like a distant memory from a time gone by.
Whether your passport is almost full, or you’ve traveled strictly state-side, you likely miss the excitement of sight-seeing and the rush of realizing it’s a whole big world out there of which you are the tiniest part.
Although nothing can replace being there, here’s the next best thing: heygo.com, a free, simple to use, interactive, live-guided-tour website that immerses you in cities around the globe. It’s beyond easy to use and the quality of video and tour guides are fantastic. They’re atmospheric, engaging, and cover all kinds of topics from traditional to curious, like the dark history of London’s Way of Death and Sydney’s Shipwrecks and Scandals. To get started, all you need to do is enter your email address and create a password. The rest is simple! Here is everything you need to know (and it’s not much!):
- You can either join a live tour that starts now or is in-progress or “book” a tour scheduled in the future. If you choose to book a tour in advance, you can add it to your Google calendar with the click of a button.
- There is a calendar view that allows you to easily see what tours are going on now and what’s coming. It shows you the rating of the tour, the tour guide’s name (some guides really get a following), and you can access or book the tour right from there.
- Once you join a tour, you can type questions in the chat feature and get real-time answers from your tour guide or you can be a silent participant and just sit back and enjoy.
- These tours are what the site calls “tip supported”, which means you can voluntarily leave a tip or not. You are also welcomed to participate for free as many times as you want or tip an extremely talented guide every now and then.
- User tips: You may need to unmute the tour in the upper-right corner or close the chat window using the icon in the lower-right corner if you’re not interested in using the feature. Also, look out for an email from Heygo asking you to click a button to verify your email address, a usual step that ensures you’re a real person and not a robot.
The destinations are endless—Transylvania, Rome, Delhi, London, Jerusalem, all from the comfort and safety of your own home. It’s a great way to pass the time, learn something new, and be reminded that we are a diverse population who are so much more alike than we are different.
Bon voyage, Buen viage, Hab ine tolle reise!
The What, Who, When, and How of COVID Pills
More and more articles are published every day about the new antiviral pills authorized for emergency use by the FDA to treat COVID-19.
What they don’t always provide is a practical breakdown of what you need to know in the event you find yourself seeking these medications.
Here’s a convenient run-down of who’s likely eligible, what you need to do if you think you are, and how timing is everything.
- What: Pfizer’s Paxlovid and Merck’s Molnupiravir are the first class of at-home therapies that aim to prevent progression and severity of COVID-19. In clinical trials, Paxlovid did overwhelmingly better, resulting in an 88 percent reduction in severe illness compared to Molnupiravir’s 30 percent.
- Who: Immunocompromised patients are given highest priority with respect to who qualifies for these medications, followed by people over 65 with underlying health conditions that put them at risk for severe illness from COVID. Drug interaction risks with Pfizer’s Paxlovid may make Merck’s Molnupiravir the only option of the two for some patients.
- When: Time is of the essence, so knowing this information before you need it is critical to ensure you act as quickly as possible. Both medications need to be taken within the first five days of COVID symptoms. This is the period when the virus is replicating the most and when these drugs are effective.
- Where: The demand for these medications far outweighs the supply, so it’s difficult to make broad statements about what pharmacies have them in stock. After speaking with your doctor to determine whether or not these medications are right for you, you could use the GoodRx COVID 19 Pill Finder and enter your zip code to see what pharmacies or health centers have availability.
- How: The first thing you’ll need is a positive PCR test. From there, reach out to your primary care doctor for guidance. He or she will know if you are a suitable candidate for this medication and how you can proceed to get it. Paxlovid is prescribed as 30 tablets over five days and Molnupiravir is given as 40 capsules over five days.
As with most things we’ve experienced during this pandemic, these COVID pills, as well as their distribution, are imperfect. But we are fortunate to have another treatment option for some members of our most vulnerable populations. And for that, we can be thankful.
Our Love/Hate Relationship with Insurance – Tips from an Old Pro
Insurance is a funny product. On one hand, you hate writing the check every month or year, especially if you’ve never filed a claim. On the other hand, when you do eventually file a claim, you’re happy you have it and want your insurance company to be financially secure enough to pay your claim and empathetic enough to treat you with dignity and respect during a trying time. After 12+ years working at Liberty Mutual, here is the advice I give my friends and family to help them manage their insurance costs without sacrificing the peace of mind that comes from knowing your policies are backed by a financially strong insurance company.
“After 12+ years working at Liberty Mutual, here is the advice I give my friends and family to help them manage their insurance costs without sacrificing the peace of mind…”
Jeff Wright, Sagewell Co-founder and COO
- Shop Every Year-Insurance companies are constantly changing their prices. If you stick with one carrier too long, you are most likely paying more than new customers at that same carrier.
- Get Prices from Multiple Companies-When you shop annually, make sure to consider prices from 2-10 insurance companies. The easiest way to do this is to work with an independent insurance agent. They make it easy to price shop and their expertise will also help you select coverages that fit your needs.
- Don’t Be Afraid to Try Something New-Insurance might seem boring, but companies are always trying new things. One of the more recent innovations has been Usage Based Insurance (UBI), where you use an app on your phone to prove you’re a great driver and if you are, you could save up to $300 per year. In retirement you’re probably not driving as much as you did while commuting to work, so a UBI program could really pay off for you.
Sagewell will work with you to ensure you’re saving on purchases you make daily, as well as more significant expenses like insurance. If you’re interested in exploring savings opportunities, email [email protected] to learn more or call 855.996.5434 to get a free quote. Finding the right insurance doesn’t have to be a hassle. Let us know if we can help.
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