What does Long-Term Care insurance cost?
Less than you think, because you probably need considerably less of it than you might think. When care is needed, your lifestyle will change – considerably. There may be less vehicles, toys, travel, dining out, etc. Thus some of your income may be diverted towards the costs of that care. Even if you do not want to spend savings, you might use the interest – yield – to also help pay the bills. Only the shortfall needs to come from Long-Term Care insurance. This we may need to have a discussion of income and assets to determine who much, or how little of it, is appropriate.
Will this pay for home care?
Yes, today’s Long-Term Care insurance policies pay for care at home, adult day care, assisted living facilities, as well as nursing homes.
What if Long-Term Care insurance is not affordable for me?
Then we can look at other alternatives to protect some of your funds from the Medicaid spend-down. On the other hand, if Medicaid becomes necessary, you may need to spend down all savings, real estate, vehicles, etc. to less than $2000 to qualify for Medicaid. Perhaps a reverse mortgage, using equity from the house, can pay for the insurance giving you choices of care instead of losing it all to Medicaid’s spend-down requirements.
Won’t Medicare pay for this?
No, Medicare is health insurance, which pays for doctors and hospitals and fixing us when we are broken. That said, Medicare will pay for a short recovery stay in a nursing home, following 3 days inpatient in a hospital, if it is for recovery of what you were in the hospital for. You must start this care within 30 days of hospital discharge, You must have recovery care 5 days per week, and you must be making progress every day to receive this health care in a nursing home. It saves Medicare money to have you do a short recovery in a much less expensive nursing home – than in the much more expensive hospital.
My neighbor, uncle, grandmother, had Long-Term Care insurance and never used it.
And I have had auto insurance for 23 years since my last accident and have not used it (knock on wood). Wouldn’t it be great to die peacefully in our sleep instead of needing care? The odds (per HHS in Washington) are that by the time we have reached age 65, 70% of us will need some Long-Term Care. This is pure insurance, that I would not bet against with those odds.
My children will care for me
Good luck with that! They can afford to retire, move back home with you and provide 24 hour care? They can lift, bathe, toilet, etc. without rest?
If you do have some care provided by family, and you pay them for such care, it is well advised to have a signed, dated and notarized employment “contract” in place. If you do not, and later need Medicaid to pay for care, Medicaid will count every payment as a gift, thus disqualifying you from receiving Medicaid once you are impoverished.
My sister’s Long-Term Care insurance only paid for 3 years of care and then ran out. Now she is spending down to Medicaid.
When a policy is purchased, you make a choice of how long it will pay for care once care is needed. This is similar to how much liability to purchase for your automobile. If more care is needed – or the auto accident causes more damage, then you pay the rest of it.
I was told I cannot get Long-Term Care insurance
I hear that often from people who came to me and got Long-Term Care insurance. Most insurance agents specialize in other areas. I have done nothing but the financing of Long-Term Care for over 24 years. I have access to more products and strategies than most agents who do not specialize in Long-Term Care. Thus I may be able to find coverage for you when others cannot, and probably at a lower cost than someone who only has one or two companies available.
We just put Mom in a Long-Term Care facility, can we get her some insurance?
Probably not, since she is eligible for a claim already. However, I may be able to make her money last far longer than anyone would think, or protect some of it from the Medicaid spend down. I solve the problems of paying for Long-Term Care. I don’t just sell insurance. If you have a problem or question on your insurance, come in and let me help. If you need care and did not prepare, I may still be able to help.