Many people aren’t planning for their future long-term care needs because they think the government will pick up the tab. In reality, that’s just not true unless you are eligible for Medicaid (generally those with less than $2,000 in assets). Given that about 70% of people over age 65 will need some type of long-term care in their lifetime, according to the U.S government, this is a serious mistake to be making. Here’s why.
Medicare limits coverage for long-term care services. Generally it will cover home care if it is part of recuperation—that is, you’re expected to get better soon. If you receive care in a facility, they may cover only the first 20 days. From day 21 to 100 you are responsible for a large daily copayment, currently a little over $150 a day. Medicare does not provide any benefits after 100 days. Then what?
That’s why it’s so important to consider long-term care insurance. It pays for a wide range of services and support that typically aren’t covered by medical insurance or Medicare. The types of care it covers fall into a range of services from having in-home help all the way to nursing home care. In addition to protecting retirement assets and providing options for care, most long-term care insurance policies come with care coordination benefits. This means that at the time of claim, a specialist will assist you in finding the appropriate care services and establish a plan based on your preferences and needs.
Because this type of insurance can be complicated, it makes sense to sit down with an LTCI specialist, who can walk you through your options and find a solution that fits your budget.