As you head towards retirement, it is a great time to plan for all of the fun things you want to do. For many, their list will include planning and taking a major vacation, focusing on hobbies, and spending time with their loved ones. Another important task which should be on your retirement checklist is to contact a long-term insurance provider. By planning for long-term care, you will be helping to ensure that you are well-provided for during your retirement years.
Healthcare costs for the aging population seem to be rising at an exponential rate. Each year, millions of senior Americans are faced with having to pay several thousands of dollars a month for long-term care services. For many, a solution to help bear the costs associated with this care is long-term care insurance policies. Long-term care insurance is insurance which covers your care for personal medical care services due to cognitive impairment or dementia, a significant medical condition, a disability, or other condition which necessitates this kind of care. Personal medical care services can mean having an in-home care provider, an assisted living facility, adult day care, or nursing home assistance. While it is hoped that you will age without needing this kind of support, for many these services are necessary to complete the tasks of daily living.
Contrary to popular belief, Medicare does not cover long-term care services. Without long-term care coverage, you will be left with the considerable costs associated with this kind of care. The effect can be to drastically reduce your estate and quality of life. Once your estate is depleted, you can apply for Medicaid which is income-sensitive and does cover long-term care insurance. This is commonly known as “Medicaid spend down” as it means you cannot qualify for Medicare while having significant resources. While there are some steps you can take to protect the family assets, some of your estate will have to be used to qualify for and repay Medicaid. For those seeking to pass their estate on to beneficiaries, having long-term care insurance would a better alternative than having to spend their estate down to qualify for Medicaid. Long-term care insurance also provides different choices for medical treatment than those offered by Medicaid. This may be preferable to those seeking to have more choice in who provides their long-term care services.
Long-term care insurance becomes more difficult to obtain as you age. Ideally, a person purchasing this kind of policy will do so while they are younger and healthier. However, people who are older can also apply. It is possible to be refused coverage due to a pre-existing condition so, if you are seeking coverage, it would be prudent to apply before the possible onset of a major illness.
Long-term care planning is essential to prepare for the future. By investing in a long-term care plan, you are taking an important step which will protect your assets while affording you choices in your future medical care.
Determining whether this coverage is right for you involves considering numerous factors. Our office can provide estate planning advice to help you navigate the decisions related to long-term coverage as well as your other estate planning needs. Please contact us if we may be of assistance.