It’s been another fun day helping folks solve problems with Long Term Care. The first call came in early this morning. The man was referred to me by an attorney. His father is in an assisted living facility, and has been spending down his life’s savings. With very little left, the facility suggested he find a way to prepay his father’s final funeral expenses.
The attorney he first spoke with referred him here, to TheLongTermCareGuy. He had questions on disposing of an old vehicle his father owned (which would cause a problem in qualifying for Medicaid), and in how Medicare and his father’s supplement would work.
Once all his questions were answered and he understood the process of getting his father on Medicaid, we determined how much money was left to prepay for funeral expenses in a Medicaid allowed irrevocable burial trust. I was able to fill out the paperwork for this and email it to him for signatures and a check. Problems solved!
The next call was from someone who had recovered from a significant illness and had been declined for Long Term Care insurance. It had been suggested they contact us to see if there was any possibility of coverage. After putting them on hold and calling numerous underwriters, I found one company that would consider them for such insurance. We went on to fill out the application over the phone and I mailed it to them for signatures and a check to apply.
The next call (it really was a fun day, solving problems is fun) was from a client who’s Long Term Care insurance had stopped paying benefits. This turned out to be an easy one as the facility she was in had filled out a questionnaire incorrectly. Once proof was sent of the need for ongoing care, the payments were quickly restored.
Lastly came a call from someone already in a Long Term Care facility wanting to know if they could buy Long Term Care insurance. Just like car insurance, you need it in place before the claim. I inquired how close their income came to paying the monthly cost of care, and what the shortfall was each month that would be coming out of savings. Rather than spend down their savings to zero, and applying for Medicaid, we looked at a very unusual type of annuity that takes your actual health ( and thus shortened life expectancy) into consideration in determining how much it will cost to produce an income of that much per month – for life.
With the (poor) health of the person taken into account, and the much shorter than average life expectancy this annuity would have to pay out over, we came up with a solution of using just a portion of the savings available to produce that life income. This gives them a monthly check for life, so they can pay the bills and never have to spend down to Medicaid impoverishment. It also leaves a good amount of savings left over as an inheritance for the family.
I don’t always get so many calls for help in one day, but when you get to solve problems for so many, in one day, it really is fun and makes the work we do so rewarding.
If you have questions or problems involving Long Term Care, or want to plan ahead for the least costly way to handle this when your health changes, give us a call at www.TheLongTermCareGuy.com (920) 884-3030 or (800) 219-9203