Farmers Need To Protect Land & Legacy From LTC

Farmers and Ranchers have much of their assets in the value of their land. Long Term Health Care costs can threaten the ability to keep the farm or ranch in the family.

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Farmers Need To Protect Land & Legacy From LTC
5 Min Read December 8th, 2016 Updated:October 13th, 2019

The financial costs and burdens of aging impact all Americans. However, the impact on rural America (farmers and ranchers) can be devastating since much of a farmer’s estate is tied up in the value of the land. Many people wish to leave their land and other personal property, cash and investments to their heirs. The desire is to keep it in the family. To protect the heirs’ inheritance from potentially devastating costs of Long Term Health Care an affordable plan must be in place prior to retirement or change in health.

Estate and Business Transition Planning

The University of Nebraska Center of Rural Affairs says Long-Term Care for America’s aging population is an important consideration in estate and business transition planning. Many have become increasingly aware of how easily the cost of Long-Term Care can wipe out a lifetime of savings or hamper the transfer of a family farm, ranch or business to future generations.

What is the risk of needing some type of extended health care? High. The U.S. Department of Health and Human Services says if you reach the age of 65 you have a 70% chance of needing some type of Long-Term Care service before you die. With advances in medical science we live longer, we survive health events and accidents. This all leads to more aging issues in addition to many health events which cause the need for help with activities of daily living or supervision due to memory problems.

Responsible Advance Planning Keeps Land and Legacy in Family Hands

Part of any responsible retirement and legacy plan is to provide for the financial costs and burdens that Long-Term Care places on loved ones. Long-Term Care Insurance is an affordable way to ease the burden and help preserve the farm or range for generations to come. 

“I hear from farm families from all over the country. This is a key concern. The costs of care can create liquidation of assets. Too many farmers have seen this happen to fellow farmers and they want to make sure the land stays in the family. For many, Long-Term Care insurance will protect their farm and other assets and plans are very affordable if they plan early when their health is better.”

Matt McCann, a nationally recognized expert in Long-Term Care Planning.

One of the biggest threats to a family legacy is catastrophic end-of-life costs. Cost of care can vary depending on where in the country a person lives. Most Long-Term Care is not in nursing homes although nursing homes are the most expensive. Long-Term Care Insurance policies will pay for care in all settings including one’s own home.

Cost of Long-Term Care Services Can Be Staggering

For example, in Iowa, an average skilled nursing home will run about $80,077 a year according to the LTC NEWS cost of care calculator (click here to view costs in your state). Monthly care at home averages about $4800 a month with base assisted living facilities running around $4000. However, costs in Ohio will be more. A Long-Term Care specialist can discuss the cost of care in your area.

The issue of the burden on the family is another consideration. Without Long-Term Care insurance, a spouse or daughter may become the primary caregiver, at least at first. Spouses who are the default primary caregiver for a partner often see a decline in their own health. Daughters or daughters-in-law have their own families and responsibilities. In some cases, they may not even live close by.

Since health insurance and Medicare (including Medicare supplements) will pay only for a very small amount of skilled care and only if you are improving, much of the cost of Long-Term Care is placed on you.

Variety of Long-Term Care Planning Options Available

There are three types of LTC plans available. Traditional tax-qualified plans provide a monthly or daily benefit once you qualify for benefits. Generally, you start with a pool of money and both the monthly benefit and benefit pool are subject to inflation increases in those benefits. In many states, you have additional “partnership” benefits which provide dollar-for-dollar asset protection in the event you spend through your LTC policy money.

Hybrid plans are also available. These are usually single premium life insurance policies or annuities with a rider for Long-Term Care.  Be careful, some of them are just an advance of death benefit or will only provide benefits for critical illness not traditional Long-Term Care. A Long-Term Care Insurance specialist can discuss the differences.

However, a few of these hybrid plans are full cash benefits. With a single premium, a farmer or rancher can pay once and never worry about ongoing premiums again. Plus, with a death benefit your estate will also have the benefit of either a tax-free long-term care benefit or a tax-free death benefit. 

Short-Term plans are also available. These provide a year of extended care. While not a complete solution, for some people with health issues this might be an appropriate option.

“One of the features that makes these products extremely attractive is the ability to select a 0-day Elimination Period (EP).”

“Most traditional LTC insurance policies require that a doctor certify a need for care lasting longer than 90 days and have a 90-day wait period for benefits.  With a 0-day EP period the policyholder accesses policy benefits early on when they need care.”

 Jesse Slome, executive director for the American Association for Long-Term Care Insurance (AALTCI).

Your Land is Your Legacy

The assets you have accumulated throughout your working life including your land you own your farm will go to one of two purposes, your lifestyle or your legacy. It’s up to you to decide how much is dedicated to each purpose. You are in control. The one thing that will get in the way is extended healthcare. The time to safeguard your property and assets should happen well ahead of your retirement. The peace-of-mind it will create is priceless.

Your land is is your legacy. You can't predict the weather or the price of your crops, but longevity does mean a high risk of needing long-term care services. Keep your land in the family with an advance plan for the financial costs and burdens that come with longevity.

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About the Author

An LTC News author focusing on long-term care and aging.

LTC News Contributor James Kelly

James Kelly

Contributor since August 21st, 2017

Editor's Note

Long-Term Care Insurance is designed to cover expenses related to long-term care services for you. These services, which include home health care, adult day care, nursing homes, and assisted living facilities, are typically not covered by standard health insurance or Medicare. It's important to understand that Medicaid will only cover long-term care services if you have very limited income and assets. This makes LTC Insurance a crucial component of your retirement planning.

The main advantage of Long-Term Care Insurance for you is protection against the rising costs of long-term care services. Without it, you could deplete your retirement savings or other assets to pay for your care. By securing Long-Term Care Insurance, you fortify your financial defenses against unforeseen health challenges.

Moreover, Long-Term Care Insurance offers more than just financial protection. It helps reduce the potential stress and responsibility that would otherwise fall on your family. Watching you struggle with health issues, like a stroke, can be emotionally draining for them. Add to that the duty of caregiving or managing care, and the weight can become overwhelming.

Having LTC Insurance ensures professional care services are covered, lightening the load on your family. This means they can focus more on offering emotional support rather than handling caregiving responsibilities themselves. 

It's wise to consider getting coverage in your 40s or 50s, but if you have good health, you can find affordable options in your 60s and beyond. An LTC specialist can assist you in finding the right coverage.

Seek Expert Guidance When Purchasing LTC Insurance

Engage an independent Long-Term Care Insurance specialist who works with leading insurance providers to find a policy tailored to your age, health, and family history, ensuring cost-effective coverage.

Keep in mind that premiums and underwriting criteria can differ significantly between companies. Consulting with an LTC Insurance expert simplifies the selection process for both you and your spouse, helping you make an informed decision.

The specialist will provide accurate quotes from all the top companies and their professional recommendations. 

Find Quality Care - You Can Have Choice

Whether for your aging parents or yourself in the years ahead, access to your choice of quality care is essential to a better quality of life.

LTC NEWS can help you and your family in many ways. The LTC NEWS Caregiver Directory is an excellent resource where you can find the most comprehensive directory of all types of long-term care services no matter where your loved one lives - Long-Term Care Services Directory | Find Care Near You.


Care Directory

Comprehensive caregiving & care facility listings in your area

Having a Long-Term Care Insurance policy for your loved one can significantly expand their options for quality care. Most home health agencies and long-term care facilities will inquire about LTC insurance coverage during their initial assessment.

It's crucial to promptly utilize the benefits of your loved one's LTC policy rather than reserving them for future use. Leveraging these benefits immediately can enhance the quality of life and access to quality care services.

LTC NEWS has combined efforts with Amada Senior Care, a leading in-home health care agency with locations throughout the country, to help you process a claim from any LTC Insurance policy.

There is no cost or obligation for this service - Filing a Long-Term Care Insurance Claim. If they don't have an LTC policy, Amada can still help develop a plan of care and provide you with many affordable in-home care options. Learn more now - Find Quality In-Home Care.

These four LTC NEWS guides will assist you in trying to find appropriate long-term health care services for a loved one:

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