When It All Works Out with LTC Expert Gary Reppen

Gary Reppen shares how long-term care insurance protected both his father and father-in-law from major care costs, covering expensive nursing home and assisted living needs. He highlights buying coverage early, understanding elimination periods, and how families without LTCI often face limited, lower quality care options. 

Transcript

SPEAKER_01 0:00

What if it all works out? That is one of my husband's favorite questions to ask. It's hard to layer that over a scenario where a parent is in need of assisted living or nursing home care. But today's guest is going to share experiences that did work out. If not in every aspect, at least they worked out financially. So welcome to the in-between years, where life doesn't come with a manual, but we've got the mic. And we're here to talk about aging parents, long-term care, and the conversations that no one wants to have. I'm your host, Holly Westerbank, and I am so excited to introduce today's guest. Gary Reppin is joining us today, and he is a vice president of Headquarters Financial Group in Morristown, New Jersey. Early in his career, he focused on Medicare programs before transitioning to selling long-term care insurance more than 25 years ago. He is an expert in this field and is putting together strategies that work for his clients. And as you'll see today, those strategies work. So, Gary, thank you so much for joining us today and sharing your stories with us. So I know that you have two different stories that you're going to share today, one about your dad, Mel, the other about your father in law Michael. I want to start with Mel and the journey you had with your dad and kind of what happened there. So tell us about Mel and his story.

SPEAKER_00 1:20

Sure. It all happens quickly, I'm learning. My father went from being pretty healthy in his mid-80s and pretty active overall and very with it, cognitively terrific. And he woke up after a dental appointment where they took him off of a blood dinner to do some dental work and had a stroke the next day. And unfortunately, that landed him in the hospital. And it was, you know, not a major stroke, but enough that he needed rehabilitation. So they moved him over to skilled nursing. And he spent about three weeks in skilled nursing, and they finally said, Well, he's as good as he's going to get. There is no further improvement. And unfortunately, he was not mobile. He was not able to walk on his own, transfer on his own. So we were in the mix of what do we do next? We decided that assisted living/slash nursing home was the best option. Most assisted living facilities said we can't take him because he's not on his own. He's not moving on his own steam. He needs too much of assistance. So we were looking towards nursing home care. So that we've that put the search together. We wound up in a very nice nursing home, as nice as nursing homes can be. But the bill was for him $14,000 a month. We were shocked. And this was in Boyne Beach, Florida. I thought because it was out of the New York area where my practice has been located for many years, I thought, well, it'll be 10,000, 12,000. But no, the number was 14. And that didn't include everything. There were still ancillary charges. So we decided to move him in there. And it was fine. He did well. They had rehabilitation going on to try to get him up and about, but not very successful. The good news is we had a long-term care insurance policy that was purchased about 30 years ago, even before I was in the business, they bought a plan, not for me, um, an old traveler's policy that paid exactly $14,000 per month. Wow. So the good news is, and it was an unlimited policy, which you can't often find today. So the good news is we were covered. He lasted there about six months, so we didn't get to use a lot of the policy. But when I did the math, I realized that about half the cost of the policy we recovered in that period of time.

SPEAKER_01 3:59

Just six months.

SPEAKER_00 4:00

Of all the premiums they paid over 20, 30 years, we recovered half the cost of that policy in a period of six months. So it's an amazing tool when it works. I wish we had policies that were like that today, but again, it's a different world. We have good policies, but not what was available many years ago.

SPEAKER_01 4:22

Yeah, sure. Not that a limited benefit and all those kind of things. But I mean, but at the end of the day, he didn't need the long stay, and many people don't, you know, many people his type of situation. I I you know what a stressful time that must have been for you and your family, you know, just as with that happening so suddenly, and then you know, trying to rehab and still, you know, having to ultimately make that decision and find the place to place him, you know, and what a good thing they did in purchasing that insurance that didn't have the financial worry too, because that's yeah, you know, that's a lot of money for most people to come up with on a monthly basis. Sure. Everybody just has that as disposable income.

SPEAKER_00 5:04

Yeah, absolutely. Absolutely, yeah.

SPEAKER_01 5:06

A great success, you know, and obviously one that I know is very personal to you, and you share in your practice and things. So I I mentioned that we have two stories, um one with your father-in-law, Michael, as well. So tell us a little bit about Michael and his situation.

SPEAKER_00 5:23

This is happening now. Michael had a fall. He is plays golf, he's 88 years old, was playing golf anyway, 88 years old, plays cards, has a wonderful social life in Oka Ratone, Florida, lives in a country club with his girlfriend. He's, you know, got it all going on. Um, however, he is a diabetic and it seems to be catching up with him, and he's struggling from neuropathy, which has caused about three falls at this point. So, with this last fall, they did hospitalize him. He didn't break anything, but they did hospitalize him to try to find out what's causing the falls. And sure enough, it's even though he's been a healthy diabetic, it's catching up with him. Uh, so they moved him into rehab, and he was just released yesterday from rehab, but they moved him into rehab for about two weeks, and they tried to get him strength and everything. But unfortunately, it's the damage is done. He needs at least a walker, if not more, to get around. And he went from playing golf four weeks ago to on a walker just literally overnight. So, things, like I said, things change quickly at this age. So we're now tasked with his with his girlfriend, she can take care of him. She doesn't want an aide in the house. It's uh so we're moving him back up north to an assisted living facility. So over the last three weeks of rehab, my wife and I have been looking at assisted living facilities. And the good news is we're looking at the most beautiful places: Sunrise, Brighton Gardens, hotel-like living, three meals a day with a tablecloth and waiter service, and they have physical therapy on site, they have a doctor that comes in, they have nurse on duty, they have trips, they go all over, they go to Broadway shows because we're in the New York area. So they're really quite luxurious. However, the cost is about $12,000 a month to get into an assisted living facility. The good news, he does have a long-term care insurance policy that I did for him when I first came into the business at 27 years old. And his long-term care insurance policy will cover about $11,000 a month. So, and he has a pension and he has Social Security, so he is well on his way. And what's nice is we have a choice. We can pick the best of the best. And the question that keeps coming into my head when I go to meet in these facilities what do people do that don't have coverage that don't have money? They just don't have this choice. They don't have the ability to say, I want my father-in-law in a luxury lifestyle. He doesn't have a lot of money, but he does have a long-term care insurance policy. So it's just a very interesting dynamic that I never experienced until recently that this provides tremendous choice and opportunity that just would not exist.

SPEAKER_01 8:27

Right. And then we make that assumption a lot of times that people want to be in their home or that's where these claims are going to start. I'm personally a huge fan of assisted living, but I didn't know about it until we had a personal experience with my mother-in-law. Yeah, placing her. In the same story, right? This she's living her best life. Like she's in one of those great facilities with the trips and the you know, they have a golf simulator in the basement of the one she's in. And so you know, they can still hit the balls and all of that. And it really is a great place when you're in that position of needing some assistance. Um, and it also provides a lot of socialization, which is very good. Um, I think people don't realize, you know, always if they haven't spent the time touring and understanding there's a really great option there. It's not a nursing home, it's nothing like that. It's great.

SPEAKER_00 9:17

No, it's really not. It's really not. And uh he's a very social person. I think if he was left alone, yeah, even at home with an aid, I think he would deteriorate very quickly. Yeah, as I've seen others do, other clients of mine that are home by themselves without that socialization. And I think assisted living is a wonderful opportunity, again, if you can afford it.

SPEAKER_01 9:39

Yeah, yeah. And it is not it is not cheap, you know. Yes, your pension and your social security and stuff can go towards that cost, but even still, there's thousands a month to make up any additional need. Yeah, and so yeah, it what a great thing that you were able and in the business and able to talk to him about long-term care insurance. And I know sometimes our families are our hardest sell. Um, so kudos to you for making that sale, and now it's paying off for him, you know, sure when he needs it. It's a really good success story. Um, so so tell me about this. You know, you've had some great successes. I mean, two really good success stories were the insurance out, the care that was needed, and the you know, the good, the good part of life without anybody having to worry about the finances of it to a great degree. But it's still not easy. You know, we know these decisions, these choices aren't easy. You know, are there things that you wish you would have been more prepared for before um one or the other of these situations came up in your life?

SPEAKER_00 10:39

Yeah, the one thing that comes to mind, and it's in my practice in in general, and uh the most frustrating part of needing care and uh even having a policy is the front end of the policy, is the elimination period. Um most people, because it kept the premiums reasonable, purchase 90, 100-day elimination period, which I still predominantly most of my business is at. Most people feel they can afford three months of care without a problem. Those that can afford a policy can afford three months of care or stimuli a situation. However, that three months can be a daunting time for the family. And I often get calls from the kids now that were mom and dad are on claim. Why do we have to wait? What is this? What is this waiting period all about? Why do we have to wait for it? What is why is it designed this way? And it's designed that way for a reason. Very often, Medicare does come in with some coverage on the first end. If you jump through the right hoops, they can cover up to 100 days, but that's not a guarantee. And most people get at maximum a month, three weeks, four weeks. You still have a good portion of time on your own. And I stress to my clients today, and they're still buying 90 days, which is fine, but that be prepared for that 90-day expense, be prepared to have 20,000, 25,000, $30,000 set aside to cover that period of time.

unknown 12:12

Yeah.

SPEAKER_00 12:13

As long as they're comfortable with that, it's a wonderful way to keep the premium reasonable. However, I do prefer a lesser elimination period, but it people can only afford so much, are only willing to pay so much, or only willing to do so much. And so 90 days is still the predominant choice.

SPEAKER_01 12:33

Yeah, yeah. So so just to be clear to people that might not understand an elimination period is kind of similar to a deductible, the period of time that that you have to need that care and pay for that out of pocket before the policy starts paying. So, like in your dad's case, 14,000 a month, that's forty-two thousand dollars. Yeah, that is not that is not small dollars for anybody just to come up with, you know, sure. Surprise, you know, because because many of these scenarios do happen, you know, really fast and quickly. And you know, it's like start coming up with it now.

SPEAKER_00 13:07

Sure.

SPEAKER_01 13:08

Just like your dad's, right?

SPEAKER_00 13:09

So absolutely.

SPEAKER_01 13:10

Yeah. So that's a good advice and good to know. I mean, and it's something that, yeah, there's a balance there between. And I know in some states, not in New York and New Jersey, unfortunately, in some states there are um products that can cover that. So that might be something to talk to your professional about. It's not available in every state, but some states there's things like short-term care that can cover that. Sometimes a little cheaper than bringing the deductible or elimination period down in your long-term care. So otherwise, just something to know, set aside whatever that dollar amount is, which can many tens of thousands.

SPEAKER_00 13:48

And no plan is perfect because no one really knows what step their care is going to take. So, like we uh some policies have a day one home care feature, which is wonderful to start home care immediately. However, in both scenarios, home care was not a possibility. So it's very that's why it makes sense to to meet with someone who's really experienced and expert in long-term care, because they can give you the ins and outs of all these features, and nothing is perfect, but we can certainly make you aware of everything that's out there and a good idea of how it's going to work in the future.

unknown 14:26

Right.

SPEAKER_01 14:26

And maybe some advice for kids if your parents do have policies, make sure you understand what how that structure is so that you're not surprised by that big elimination period if there happens to be good advice. That's really good advice. So let me ask you then, as a professional in this industry, you know, and one that has been in it for uh for 25 years, I'm sure you've seen many changes, uh, both on the positive and the negative side. What do you see right now going on that you think is going to impact families that are on this journey?

SPEAKER_00 14:56

It's a good question. I think the biggest message people need to know is have to look at this when health is, I use the word with clients, really good. When health is really good. Unfortunately, my phone rings off the hook with every kind of health combination you can find. I had two MS calls yesterday, young people in their 50s, two women both diagnosed with MS, very common in the 50s. I get many strokes constantly. I get, and these are not elderly people, these are young people typically in their 50s, sometimes in their 40s, and need to do this when health is really good. Um, you can't call when something has happened. We really have very few options when there's an episode of something. And that's what I wish more people knew. I wish people knew that you know how I use the word really good because fair doesn't do it. It just doesn't do it.

SPEAKER_01 16:02

You know, yeah, you have to be you have to be very healthy in order to qualify. It's pretty rigorous, you know, on the underwriting, how they review the health background and history. And while you might be feeling well and getting along just fine, like those conditions like the MS or the mini strokes or whatever, they can be very challenged, is another one that um people don't think is a big deal, but it's actually our number one decline.

SPEAKER_00 16:25

Yeah.

SPEAKER_01 16:25

So yeah, you gotta do it before those things are part of your health history. That's great advice. So you know, circling back and wrapping up, we're starting to run up on our time here in caregiving, in and in your experiences that you've had, what would you say is the one thing that nobody told you before you started down the this journey?

SPEAKER_00 16:45

It goes back to what I experienced with my father-in-law. No one really told me that without the funding of a long-term care insurance policy or a lot of cash available, there are no choices. There really are no choices. You don't get to go to a luxury-assisted living facility. There are no choices. I asked one of the administrators at the facility, what do people do that can't afford this? And she said, Unfortunately, we just can't help them. We just can't help them. So, where do they go? They're subject to a list of Medicaid, which is primarily nursing homes. They may not need a nursing home, but they're headed in that direction. And that's I I never realized it as much as the last three weeks while I experienced touring these wonderful facilities.

SPEAKER_01 17:41

Yeah, yeah, that's that is great advice. If you haven't, if you don't have the coverage and you can't afford it out of your own pocket, you've just limited your choices dramatically. Yes. In your father-in-law, in Michael's case, you know, he's got a great bunch of life to live and an opportunity to live that out in a place where he's going to enjoy that and things. And so, you know, I'm sure he's very grateful to you for convincing him to purchase that insurance and that choice. It's a great success story. So, Gary, I you know, that's the time we have for today. I really so much appreciate you sharing Mel and Michael's stories and and the journey that you've been on with both of them, the success that you've had, you know, in in both of them, you know, having the financial coverage, the the support that they needed, you know, to live out their journeys the way that that they needed to. And you had the right choices and the ability to make those right choices. So thank you for sharing that with us. And everybody look for the next episode of the in between years coming at you next month. Thanks for listening and have a great day.