What many of us should consider when thinking about long-term care planning

Eagle Wealth Management |


Hello Eagle Wealth Community,

What’s your first reaction when someone brings up long-term care insurance?  A lot of people might say,

“it’s too expensive”

 “the policy is confusing”

 or “is it really worth it?”

The trouble is, there’s a real likelihood that you or a loved one may need it one day.

The U.S. Department of Health and Human Services estimates that 70% of people over age 65 can expect to need extended care services at some point in their lives.  

Imagine what your later in life care will look like.  Will you pay to have in-home care to keep up your lifestyle?  Or would you downsize and transition into an assisted living community?

According to an AARP survey, most seniors want to stay in their homes as long as possible.  Though the old-fashioned nuclear family dynamic is changing.  Rather than living with their children, many seniors desire independence or don’t want to be a burden to their families. 

There are basically two approaches when contemplating your long-term care needs: self-insure or purchase long-term care insurance.  If you’re considering a policy for yourself or helping a loved one, it’s important to ask the right questions.  Here’s what you should ask to better understand the costs and benefits of long term-care insurance policies.

What types of facilities are covered?  Extended-care policies can cover nursing home care, home health care, respite care, hospice care, personal care in your home, assisted living facilities, adult daycare centers, and other community facilities.  Many policies cover some combination of these.  Make sure to ask what facilities are included when you’re considering a policy.

What’s the daily, weekly, or monthly benefit amount?  Policies normally pay benefits by the day, week, or month.  You may want to evaluate how (and how much) eldercare facilities in your area charge for their services before committing to a policy.

What’s the maximum benefit amount?  Many policies limit the total benefit they’ll pay over the life of the contract.  Some state this limit in years, others in total dollar amount.

What’s the elimination period?  Extended-care policy benefits don’t necessarily start when you enter a nursing home.  Most policies have an elimination period – a timeframe during which the insured is wholly responsible for the cost of care.  In many policies, elimination periods can range anywhere from 20 to 100 days after nursing home entry or disability.1

Does the policy offer inflation protection?  Adding inflation protection to a policy may increase its cost, but it could be very important as the price of extended care may increase significantly over time.

When are benefits triggered?  Insurers set some criteria for this.  Commonly, extended-care policies pay out benefits when the insured person cannot perform 2 to 3 out of six activities of daily living (ADLs) without assistance.  The six activities, cited by most insurance companies, include bathing, caring for incontinence, dressing, eating, toileting, and transferring.  A medical evaluation of Alzheimer’s disease or other forms of dementia may also make the insured eligible for benefits.2

Is the policy tax qualified?  In such a case, the policyholder may be eligible for a federal or state tax break.  Under federal law and some state laws, premiums paid on a tax-qualified extended-care policy are considered tax-deductible medical expenses once certain thresholds are met.  The older you are, the more you may be able to deduct under federal law.  You must itemize deductions to qualify for such a tax break, of course.3

Our job as your family CFO is to make sure you have all the information to confidently make smart decisions.  Comprehensive financial planning requires looking at your entire life financial picture, not just a snapshot.  This includes addressing any extended care needs.

What’s our take?  While nobody likes to pay for additional insurance, we trust that peace of mind is an irreplaceable asset.  There’s a lot to consider when reviewing your long-term care plan, but the best plan for you will be based on your own unique circumstances and financial goals. 

If you have questions about your own policy or long-term care needs, let’s talk.  Our team is on your side.


Your Eagle Wealth Team


P.S. If you already have long-term care insurance, make sure to keep your Peace of Mind Checklist up to date with the latest policy information.


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The Week on Wall Street

The stock market posted small losses last week despite a very strong showing by corporate America.

The Dow Jones Industrial Average slipped 0.36%, while the Standard & Poor’s 500 lost 0.37%. The Nasdaq Composite index dropped 1.11% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, jumped 1.51%.1,2,3

Stocks Take a Breather

There were plenty of excuses for stocks to retreat last week. News of a new phase in Chinese regulators’ crackdown on large, private-sector companies, a decline in new home sales, and concerns about the Delta variant weighed on investors.

After opening the week adding to record highs, stocks turned lower despite an earnings season that continued to impress.

Solid earnings from the mega-cap technology companies were not enough to propel stocks higher. Instead, stocks slipped throughout the week, fighting uncertainty over Chinese stocks, a disappointing second-quarter Gross Domestic Product number, and a retreat in technology shares they reset to fresh company guidance.

Chinese Crackdown

Chinese technology stocks were under pressure last week as Chinese regulators continued their push to rein in large companies for reasons that include data security, abusive corporate behavior, financial stability, and curtailing private-sector power.

Chinese government actions raised new levels of concerns about which industries may next fall in the crosshairs of regulators. American investors have plenty of exposure to Chinese companies. Substantial losses were felt by mutual funds and hedge funds, which account for about 86% of the holdings in the over 200 U.S.-listed Chinese companies whose aggregate market capitalization exceeds $2 trillion.4



Monday: Simon Property Group, Inc. (SPG).
Tuesday: Alibaba Group Holdings (BABA), Activision Blizzard, Inc. (ATVI), Amgen, Inc. (AMGN), Eli Lilly & Company (LLY), Diageo, PLC (DEO).
Wednesday: Roku, Inc. (ROKU), Prudential Financial, Inc. (PRU), CVS Health Corporation (CVS), General Motors, Inc. (GM), Etsy, Inc. (ETSY), Electronic Arts, Inc. (EA), MGM Resorts International (MGM), Match Group, Inc. (MTCH), Emerson Electric Co. (EMR), Booking Holdings (BKNG).
Thursday: Square, Inc. (SQ), Illumina, Inc. (ILMN), Duke Energy Corporation (DUK), Albemarle Corporation (ALB), Cigna Corporation (CI), Becton, Dickinson and Company (BDX), Regeneron Pharmaceuticals, Inc. (REGN).
Friday: Dominion Energy (D).


Source: Econoday, July 30, 2021
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements 




Monday: Tesla (TSLA), Lockheed Martin (LMT).
Tuesday: Apple, Inc. (AAPL), Microsoft Corporation (MSFT), General Electric (GE), Advanced Micro Devices, Inc. (AMD), Visa (V), Alphabet, Inc. (GOOGL), Starbucks Corporation (SBUX), 3M Company (MMM), United Parcel Service, Inc. (UPS), Mondelez International (MDLZ).
Wednesday: Facebook, Inc. (FB), The Boeing Corporation (BA), Qualcomm, Inc. (QCOM), Bristol Myers Squibb (BMY), Paypal Holdings (PYPL), Pfizer, Inc. (PFE), McDonalds Corporation (MCD), Shopify, Inc. (SHOP), Servicenow, Inc. (NOW), Thermo Fisher Scientific, Inc. (TMO).
Thursday:  Amazon.com, Inc. (AMZN), Ford Motor Company (F), Mastercard (MA), Twilio, Inc. (TWLO), Merck & Company (MRK), The Southern Company (SO), Northrop Grumman (NOC), Comcast Corporation (CMCSA), AnheuserBusch InBev (BUD), Abbvie, Inc. (ABBV).
Friday: Exxon Mobil Corporation (XOM), Caterpillar, Inc.(CAT), Chevron Corporation (CVX), Procter & Gamble (PG), Charter Communications, Inc. (CHRT).

Source: Zacks, July 23, 2021
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.