It used to be just a way to prevent spending your entire life’s savings on Long-Term Care costs. LTC insurance still does that, using just the interest on a bit of your savings to pay the premium versus spending the entire account on care.
There is a much more compelling reason today. Medicaid, a welfare program that will pay for care once you are completely impoverished, pays less than the cost to provide your care. Providers, both home care and facility care cannot afford to lose money on every client. Thus many now require you to provide documentation of your ability to pay for the care costs for 2-3 years before becoming their client.
Perhaps a county run home, or a non-profit will allow you to enter once Medicaid is your payment source. Tom Bodette says he will leave the light on for you but do you really want to live out your last years of life like that?
If you have the money, or the insurance to pay for your care, you will be welcomed anywhere. If for any reason you are not happy with the care you are receiving, you can change providers easily. In Green Bay, WI where I live, all the providers know of my LTC insurance policy and they all want me (I am not that good looking).
If you have the money to pay for more than a year or two of care, why spend all that money when just the interest could buy insurance and you can leave your money to heirs? Surely you have someone or place you would like to leave your savings.
70% of us will need LTC by the time we have reached age 65. Those are not good odds to bet against. Look to your left and your right, 2 of those 3 people will need care at some point in their lives. Watching your life’s savings shrink faster than you can imagine is not only alarming to you, but to those you will leave behind as well.
Which assets to liquidate first? Second? Capital gains taxes. Income taxes on IRA’s and 401K accounts. New “rich guy” income tax bracket. There are many drawbacks to spending thousands of dollars a month out of your savings, land, or other wealth. LTC is far more expensive than most car accidents and surely you would not drive without that insurance.
When I travel, I stay at Holiday Inns or Hyatts or similar type hotels. When I need help, I want to be cared for in a nice facility where I can enjoy the last few years of my life. Good food, wine, the care I need from sufficient staff, etc. With my LTC insurance and other income I have the finances to receive this care. Do you?
Investigate with an expert in this area. Most people do not need as much of the insurance as they first imagine. When chosen appropriately it is a good value. Call the experts – www.TheLongTermCareGuy.com at (920) 884-3030 and learn options.
PS: If you were told you cannot get LTC insurance, call us – we have other ways to help you!