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FEATURE – “Should I get long-term care insurance?” I’ve been asked this question many times in my career and the answer is simple: It depends.
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It depends on several things, including your wealth, marital status, income, and your country of residence.
A recent article in Forbes stated that less than 8% of Americans have long-term care insurance and less than 10% even have a plan. Most people are simply not ready to deal with the costs and life changes that a care situation would bring. The cost can easily exceed $ 7,000 a month or more and frankly most people cannot afford the cost.
Many people would like to rely on the government for this care, but the truth is that Medicare doesn’t take care of your long-term care needs. Medicare only offers approved fees and some skilled and rehabilitative care. Insurance cover can begin after three days and nights of hospitalization and only for a maximum of 100 days per diagnosis.
What happens after 100 days? You’re alone.
Our country has a social system called Medicaid. Medicaid will not pay for necessary care until you have qualified in your state of residence and your assets have reached the minimum required level. Some states only allow a remainder of $ 2,000 in total assets.
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Long-term care insurance is also expensive and not easy to purchase. Health issues can often end any possibility of owning insurance; Your current health is a factor in purchasing a policy. Most people do not know that the premiums for long-term care insurance are not guaranteed, and companies can increase the premiums with the state insurance approval according to their expenses.
Modern care concepts can provide services outside of the actual care home. Some people assume that long-term insurance only pays for care in a home, but that can be misleading. Insurers define long-term care as providing assistance to a person suffering from an illness or illness that limits their ability to carry out their normal daily activities. Long-term care insurance can also provide funding for rehabilitative care and various types of assisted care at home.
Planning can lead people to consider other options for covering these expenses. Some life insurance companies have long-term care drivers who can help, but qualifying for life insurance can also be an issue. Some pensions also allow for dependent affiliation, which can provide some protection, but the account value of the pension could also be drained.
Many people simply think that they can give away wealth to their heirs and protect the wealth. That’s just not true. Almost any gift given in the past five years (except between spouses) can be canceled, and the asset was returned to the testator’s estate.
Regardless of your final decision, which may include self-financing, long-term care insurance, government benefits, or family care, there is a likelihood that over 70% of people over 80 will need some form of assistance. Planning is essential, and the sooner discussions about this future liability category begin, the better off you will be.
Copyright © Lyle Boss, all rights reserved.
Lyle Boss is a member of Syndicated Columnists, a national organization that advocates a fully transparent approach to money management. As an asset protection instructor, he has helped thousands of seniors find their financial retirement options. Its clients include government employees, teachers, doctors, farmers and business people to name a few. Boss has been actively teaching advanced estate planning and wealth preservation for more than 20 years in locations like the University of Utah and in over 200 Senior Retirement Consumer Education Workshops throughout Utah, Idaho, and Wyoming. Boss and his wife Deanna live in South Ogden and St. George, Utah.
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