Odds are you will need long-term care at some point, so you might as well plan for it.
Each year you get older.
As you age, your health will begin to deteriorate.
That is a fact of life.
When health fails, you may need help with everyday tasks.
For this assistance, you will likely require long-term care to some extent.
According to a recent Kaiser Health News article, titled “How To Get Long-Term Care At Home Without Busting The Bank,” you can be prepared to finance this care if you plan ahead.
The U.S. Department of Health and Human Services estimated there are more than 6 million elderly Americans with a high need for long-term care.
What does this mean exactly?
These adults will need assistance for two more activities of daily living for at least 90 days or need quiet a bit of assistance as a result of a cognitive impairment.
What kind of activities might this include?
- Bathing
- Going to the bathroom
- Dressing
- Eating
- Getting into or out of a bed
About 52 percent of adults over 65 will need the services at some point.
Half will need it for 2 years or fewer.
Twelve percent will need this care for two to four years.
Fourteen present will need this care for more than five years.
The issue?
People are not planning for this.
In fact, fewer than 10 percent have purchased long-term care insurance.
Why?
There may be several factors.
Many insurers have left the market.
Premiums have increased.
Many people see it as only a tool to cover nursing home care costs.
Although long-term care insurance is certainly beneficial to help cover nursing home costs (a semiprivate room in a nursing care facility costs about $82,000 per year), some policies will help cover home care costs.
Home care is significantly less expensive at $46,000 on average per year for six hours a day for seven days a week.
Home care is growing in popularity and the majority of individuals will not have to enter a nursing home.
What if you do need nursing home care?
You may have the option of a qualified long-term care partnership policy.
What does this do?
It is a product designed to preserve assets for seniors who become ill and require nursing home care while still allowing them to be eligible for Medicaid.
Every dollar received in long-term care benefits is exempt from seizure by the state and its Medicaid Estate Recovery Program.
These policies are not available in all states.
Where can you not get one?
Hawaii, Illinois, Alaska, Massachusetts, New Mexico, Mississippi, Vermont and Washington, D. C. do not recognize this policies.
Although this sounds great, there is very little data regarding its use.
Begin planning now to set yourself up for financial security and success later.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
Reference: Kaiser Health News (July 27, 2017) “How to Get Long-Term Care at Home Without Busting the Bank”
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