Should you develop a health condition that requires part- or full-time care, and your health insurance doesn’t cover the costs, how will you pay for what you need? Answer: Long Term Care Insurance (LTCi).
The U.S. Department of Health and Human Services reports that 69% of people will use long-term care (LTC) services at some point. That care doesn’t come cheap: LTC costs range from $19,500 per year for daycare to $102,200 per year for a private room in a nursing home.
LTCi protects your assets. Many people falsely believe that public health programs like Medicare or Medicaid will cover their LTC expenses. Medicare caps payments for skilled care at 100 days, and it only pays if certain requirements are met. Medicaid only kicks in after you spend down your assets. Private health insurance only pays for doctor and hospital bills. As a result, you must spend most of your own money to pay for care.
LTCi takes pressure off your family. Becoming a caregiver is physically, emotionally, and often financially burdensome so you shouldn’t rely on family members to handle this need. Many families are not able or willing to make such a huge sacrifice. This is especially true when the caregiver is a spouse or partner also facing aging health issues.
LTCi gives you care options. LTCi gives you the flexibility of choices when it comes to deciding where to receive care. Many facilities don’t accept Medicaid, leaving you at the mercy of their decisions on your care and at which facility you will reside. What’s more, Medicaid doesn’t pay for all (or even any) assisted living costs in many states.
LTCi may come with life insurance protection. Today, many LTCi policies are hybrid policies that bundle long-term care coverage with life insurance coverage. These hybrids offer your loved ones protection in the event you pass away, while also giving you the confidence of knowing that your LTC needs are covered.
As you age, the reasons for needing LTC increase; from living alone, to poor health, to chronic disabilities. With the right coverage, you’ll never have to wonder what would happen if you needed LTC or how that care would be paid for.
Give us a call today so we can talk through a better care option than burdening family members at 518.581.1642. You deserve peace of mind and we know how to help you achieve it.
This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims-paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.