Will you need long term care?
Most of you would answer “I don’t know”.
I don’t know either.
If I have a crystal ball that can tell the future, I would give you my honest answer.
Unfortunately, I don’t.
But my best advice for you is “be prepared when the need for long term care does arise in your future”.
Look at your elderly parents, uncles, aunties or grandparents at their current age. Do you think you’ll need long term care when you’re their age?
Let’s see what options are available.
Medicare covers only a portion of long-term care costs up to 100 days; 20 days are provided at no cost and the remaining 80 are at a significant co-pay for the insured.
Long-term disability covers your lost income only, but doesn’t pay for any LTC needs. Oftentimes, when your job ends, so does your coverage.
Health insurance does not cover long-term care expenses. Medigap policies are health insurance and also do not cover LTC expenses.
Medicaid covers long-term care expenses for individuals with countable assets of $2,000 or less and care could be limited to a nursing home. You can no longer just transfer all your properties to your children to be qualified for Medicaid. They look at your assets in the past 5 years. If you sold a house in the last 5 years, they want you to spend down all that proceed until you’re poor enough to qualify.
If you don’t want to spend down all your asset to qualify for long term care…can you afford to pay out of pocket?
Is this a good option for you?
You can always pay for long term care out of pocket. But how deep is your pocket? Do you have the assets to pay for long-term care, and how long can that asset support your long-term care?
Can your family members take care of you when you can’t take care of yourself?
Even the most responsible family may not be prepared physically, emotionally or financially to care for their loved one. 53% of Americans caring for a loved one lost income due to the demands of providing that care.
Long-term care insurance provides funding to cover home healthcare, assisted living, nursing home and even family member who takes care of you.
Long term care insurance premium are a lot more affordable than long term care. Besides, stand-alone long term care insurance policy, many life insurance policies offer long-term care insurance as a rider at very affordable rate.
So, can you afford NOT to have long term care insurance? Do you want to use up all your hard-earned asset on long-term care? Do you want to spouse or children to quit their job just so they can take care of you?