Strategies for Financing Long-Term Care

Fuller, Phillip, and Roger Calcote. "Strategies for Financing Long-term Care." National Public Accountant (June 1996): 22-25.

Posted: 5 Jul 2017

Date Written: 1996

Abstract

Anyone can say, "I am a personal financial planner." In this environment, the accounting profession is positioned to become the leading provider of personal financial planning services. In many instances, accountants are the only professionals clients know and trust with regard to personal financial planning. Accountants, unlike some financial specialists, recommend what clients need - not what they can sell to them.

People ask accountants to design financial plans for a variety of reasons:

* to achieve financial independence,

* for retirement,

* to protect their estates for the benefit of heirs, and

* to avoid being a physical burden to relatives and friends.

For the well-being of clients, accountants should consider the need for long-term health care (LTC) in clients' financial plans. Of the 2.2 million people who turned 65 in 1990, 43% will spend some time in a nursing home. Ninety percent of those who stay two years or more will bankrupt themselves within the first two years (Greer 1991).

Although many people consider accountants personal financial planning experts, most accountants need to learn more about insurance and investments. These two areas are not a part of their traditional training in accounting. Clients look to accountants to explain the alternatives before going to other professionals to implement financial plans.

This article discusses alternatives for financing LTC. It reviews governmental programs that are associated with financing health care. LTC insurance and life insurance are discussed as ways to finance LTC. In addition, two strategies for utilizing home equity to finance care are presented.

Keywords: Health care, Long term care, Medicare

JEL Classification: I13, I18, M41

Suggested Citation

Fuller, Phillip, Strategies for Financing Long-Term Care (1996). Fuller, Phillip, and Roger Calcote. "Strategies for Financing Long-term Care." National Public Accountant (June 1996): 22-25., Available at SSRN: https://ssrn.com/abstract=2996289

Phillip Fuller (Contact Author)

Jackson State University ( email )

1400 John R. Lynch St
Jackson, MS 39217
United States

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