Long Term Care
A myth associated with long term care states Medicare pays benefits. Medicaid pays benefits but only after "spending down" personal assets such as retirement funds, annuities, cash value in policies, etc. Once on Medicaid, except for a very minmiual allowance for personal items, income is diverted to the institution providing you care.
Why is long term care an important part of your insurance coverage?
LTC is about having quality caregivers available at your level of need and the resources to pay for these services. Carriers have professional care coordinators assist you in quality care at many levels: home, adult day care, assisted living, nursing home or hospice. Benefits can be structured to meet your budget and potential expenses.
LTC is about protecting assets. It is estimated the cost of care doubles every 15 years. You may feel you can pay $57,000 a year semi private room rates in a nursing home now, but what about in 5, 10, 15 years. With a Partnership approved plan, let's say your benefits expire after the carrier has spent $350,000 on your care. You can deduct $350,000 from your assets in qualifying for Medicaid.
Typical objections to purchasing long term care.
- I will self insure. If you self insure your money is not available to you and you must have it invested to keep up with inflation and increase costs for care.
- A family member will take care of me. You must realistically examine who will care for you. Even if a child or spouse is not working will they be able to lift, provide the level of care you will require, and care for their own family needs?
- I don't want to spend the money and never use it. There are several ways to fund care today, including the traditional plans, life, and annuity products where the features answer this concern. Besides, when/if you do use the policy, it could only take a few days of benefits to recuperate years of premiums.
Not everyone is a candidate for a LTC policy. Many carriers use 7.5% of your income as a maximum rule of thumb on the affordability of premiums. Let's discuss your individual situation. Click the link below, complete the short form and you will be contacted by the means you select: email, text, phone.