Why is it called “Anti-Nursing Home Insurance?” Because having it gives you a really good chance of never seeing the inside of a nursing home. If you can pay for home care and/or assisted living type facilities, you may be among the 85% of those needing Long Term Care who never enter a nursing home. If, however, you are not able to pay for home or assisted living care, and must turn to Medicaid, you may well have to go to a nursing home.
The problem is that Long Term Care is expensive. Not all of us are wealthy, and when our money runs out we might qualify for Medicaid. Medicaid is a needs based program, you don’t get it because you are old, or disabled, or need care; you get it because you are broke.
A single person must spend down to $2000 of assets which uses up the savings, IRA’s, 401K’s, house, car, etc. Life insurance must be cashed in if its over $1500 (not enough to get you down below the frost line in Wisconsin), and you are allowed to put some burial money into an irrevocable trust so your children do not end having to pay for your funeral, a more common thing than you think. If you haven’t done that yet – call me and I’ll set that up with no fees.
If one of a married couple needs Medicaid, the spouse at home is allowed to retain use of the house, a car, and some income and assets (which will go back to Medicaid after that person’s death). It’s not a pretty picture, in addition to the bias toward nursing homes for those on Medicaid. Even some nursing homes will not accept you if you are qualified for Medicaid or will be soon because they stand to lose $2400 a month for your care.
If, however, you had purchased enough Long Term Care insurance so that it, along with your other available income were enough to pay for home care and/or an assisted living facility, you might be far better off. Over 85% of all Long Term Care can be done at home or in assisted living facilities, the places that often look like nice hotels. You may be able to pay for home care or assisted living for between $3000 to $5000 a month – far less than most nursing homes cost, but probably more than your Social Security check gives you. Thus the Anti-Nursing Home Insurance policy is very important!
So why don’t you have yours yet? Hopefully you are still healthy enough to purchase it, if you wait too long, you may no longer qualify. Often I find that an appropriately sized policy can cover both a husband and wife for less than $200 a month. That’s the interest on $80,000 earning just 3% interest, and far better than spending the $80,000 for one of you quickly, and then needing to ask for Medicaid. Perhaps it might be a good idea to contact TheLongTermCareGuy.com at 920 884-3030 and investigate, while you are still healthy enough!