Long Term Care
Planning now gives you more options later
Long-term care (LTC) involves a variety of supports and services designed to help you live as independently and safely as possible when you can no longer perform everyday activities on your own. And putting a plan in place now — as you would for any other future financial need — can help you choose the type of care that is familiar and comfortable for you, whatever your needs might be.
Know your options
There are many misconceptions surrounding how long-term care expenses can be covered. One important step in creating a plan is to know what your funding options really are
> Health insurance Does not cover long-term care expenses
> Medicare Covers up to only 100 days if qualifiers, such as a 3-consecutive-day hospital stay under treatment, are met; the first 20 days are covered 100%, but after that, there is a significant co-pay
> Medicaid Covers long-term care expenses for individuals with countable assets of $2,000 or less (varies by state); care may be limited to a nursing home
> Adult children Many people might assume that their adult children will care for them later in life, but this can present huge financial, physical and emotional challenges for the children
> Out of pocket Using income and savings or selling assets might be an option; however, it may leave a surviving spouse with fewer financial resources or reduce a legacy planned for heirs
Long-term care coverage- LTC coverage can be a cost-efficient way to help protect yourself and your assets from the potentially high cost of long-term care
Understanding long-term care
LTC benefit payout options
> No bills or receipts are required to be submitted once a claim is established.
> You can elect to receive up to 100% of the available monthly benefit amount and use it without policy restrictions.
> If your actual current expenses are less than the available benefit amount, you can choose to take a lower amount to preserve the death benefit or extend the period over which LTC benefits will be available; or you can bank any amount not currently needed or you can bank any amount not currently needed and use it to pay future expenses.
Creating a plan to address LTC costs
1. Talk to a trusted financial professional.
2. Get an LTC cost estimate.
3. Consider your coverage options.
4. Consider potential sources of funding options.