Like the smoker who knows cigarettes can cause cancer, but assumes it will never happen to them, or the teenager who thinks it’s okay to send just one text while driving, many people think long-term care insurance is something they’ll never need. Or maybe they just hope they won’t need it.
Unfortunately, people put off making a decision about long-term care (LTC) insurance because they are in denial over the possibility of needing it. But once you need it, it’s pretty hard to qualify. Insurance is tricky that way. True, you may be paying for something you’ll never end up using but remember it’s going to be less expensive the younger you are. And if you wait too long, you may no longer be eligible.
One thing to remember about LTC insurance is that you can always add to your policy later. If you’ve decided that long-term insurance is something you might be interested in buying, start out with a policy you can afford. Variables include the amount that is paid out for care, how many years the policy runs, and the waiting period required after the claim is approved.
Many long-term insurance policies also offer riders that allow you to make changes later. Common ones include a cost-of-living increase in benefits and protection against inflation.
No doubt about it, long-term insurance can be a great safety net to have. But the truth is it’s not right for everyone. Experts advise that if you have more than $50,000 in savings in addition to a home and car, it is probably worth your while to purchase LTC insurance. However, if your assets total less than $50,000 and your annual income is primarily from Social Security, it probably doesn’t make sense to spend the money on the annual premiums. The fact is that even with the insurance benefits, you’ll probably end up going through your entire savings. That’s the bad news. The good news is that you’ll be eligible for Medicaid, which will take over payments for your nursing home or in some cases, assisted living care.
If you can afford the insurance, one nice benefit (besides getting at least a portion of your care paid for) is that LTC insurance will cover a variety of long-term care services: nursing home or assisted living care, adult day care, respite, hospice, memory care facilities and even in-home care.
Medicaid, on the other hand, will generally only cover care in a skilled nursing home, which means the person will need to move away from “home” or their assisted living facility once their funds have run out. And while the level of care is as good or better in a nursing home, the atmosphere is usually more sterile and double rooms are not uncommon.
There isn’t a right or wrong answer to the question of long-term care insurance. If you’re a baby boomer or beyond, it’s a good idea to sit down with someone knowledgeable about the subject and find out whether an LTC insurance policy is right for you. Just do it soon!
Unfortunately, people put off making a decision about long-term care (LTC) insurance because they are in denial over the possibility of needing it. But once you need it, it’s pretty hard to qualify. Insurance is tricky that way. True, you may be paying for something you’ll never end up using but remember it’s going to be less expensive the younger you are. And if you wait too long, you may no longer be eligible.
One thing to remember about LTC insurance is that you can always add to your policy later. If you’ve decided that long-term insurance is something you might be interested in buying, start out with a policy you can afford. Variables include the amount that is paid out for care, how many years the policy runs, and the waiting period required after the claim is approved.
Many long-term insurance policies also offer riders that allow you to make changes later. Common ones include a cost-of-living increase in benefits and protection against inflation.
No doubt about it, long-term insurance can be a great safety net to have. But the truth is it’s not right for everyone. Experts advise that if you have more than $50,000 in savings in addition to a home and car, it is probably worth your while to purchase LTC insurance. However, if your assets total less than $50,000 and your annual income is primarily from Social Security, it probably doesn’t make sense to spend the money on the annual premiums. The fact is that even with the insurance benefits, you’ll probably end up going through your entire savings. That’s the bad news. The good news is that you’ll be eligible for Medicaid, which will take over payments for your nursing home or in some cases, assisted living care.
If you can afford the insurance, one nice benefit (besides getting at least a portion of your care paid for) is that LTC insurance will cover a variety of long-term care services: nursing home or assisted living care, adult day care, respite, hospice, memory care facilities and even in-home care.
Medicaid, on the other hand, will generally only cover care in a skilled nursing home, which means the person will need to move away from “home” or their assisted living facility once their funds have run out. And while the level of care is as good or better in a nursing home, the atmosphere is usually more sterile and double rooms are not uncommon.
There isn’t a right or wrong answer to the question of long-term care insurance. If you’re a baby boomer or beyond, it’s a good idea to sit down with someone knowledgeable about the subject and find out whether an LTC insurance policy is right for you. Just do it soon!
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