Long-term care insurance is a topic most people prefer not to think about. And who can blame them; the prospect of needing long-term care is not a pleasant thought. Often when people consider this type of insurance, in my experience, they assume they can’t afford it or hope they don’t need it. Only a very small percentage of people have purchased an insurance policy. While it’s true that many people shouldn’t buy long-term care insurance, it’s risky to at least not make an informed decision. When determining whether to purchase this insurance, here are several things to consider:
1. What does it cover?
If you are unable to care for yourself due to a long-term illness or disability, long-term care insurance may cover the type of services you need, such as home care, respite or adult day care, or care in a nursing home or nursing home. assisted living center .
2. Will Medicare or Medicaid benefits not be enough?
Medicare will only provide coverage for skilled nursing home care for a maximum period of 100 days. Medicaid, on the other hand, has very strict rules that require applicants to have minimum assets before qualifying. With the average cost of a nursing home exceeding $7,000 per month (that’s $84,000 per year), a short stay in a nursing home can wipe out a lifetime’s savings.
3. Isn’t it expensive?
Depending on your age, health, and the specific type of long-term care coverage you choose, it can be expensive, and premiums can go up even after you buy the policy. Many people simply cannot afford the cost of this insurance.
4. Would it be better if I self-insured?
For those with higher income and savings, it may be advisable to develop your own financial plan to pay for your long-term care needs with your own assets.
5. What should I do?
Each person’s situation is unique and what may be advisable for one person is not necessarily a good idea for another. The worst thing you can do is nothing. It is highly recommended that you consult with an expert and research your options so you can make an informed decision about what is best for you.
Conclusion:
Long-term care insurance can mean the difference between living your life the way you want, receiving welfare, or becoming a burden on your family. It is important to find out what is the best plan for you by consulting an attorney experienced in elder law.