With people living longer AND with more medical care needs than ever before, long term care planning is an important topic to consider.
When faced with a long term care situation, there are several possible options to look at taking:
Medicare is only designed to last for about 100 days.
Medicaid is generally welfare and to qualify, one has to spend down their assets to qualify. There is now even a 5 year look back.
3.) Private Family Support
Family and friends might be able to care for a loved one for awhile, but this can also be a burden on them.
4.) Self Insurance
Some people believe that they can self insure themselves by the amount assets that have accumulated. In cases such as these, these individuals have to first decide what they plan to liquidate first and often realize that one or two years of care in a facility could erode their nest egg substantially. General costs of a nursing home in the midwest is anywhere between $75,000 and $200,000 per year.
5.) Sharing the risk with an insurance carrier
One might want to purchase life insurance with a long term care rider (LTC) attached to the policy. If you don’t use the rider, then it can become a death benefit for a loved one.
6.) A stand alone insurance policy
A stand alone long term care policy can cover everything, even with a return of premium if it is desired.
For more information, please visit our long term care services page.