Do you have a plan for your Long Term Care? Will you end up in a nursing home and outlive or severely deplete your financial resources? Too often people avoid facing reality of the Long-Term Care threat, avoid taking action while they still can and avoid communicating their Long-Term Care game plan to their loved ones.
The odds of falling prey to Long-Term Care are staggering and the cost can be even more so. A year in a Connecticut Nursing Home averages more then $90, 000.00. Unfortunately, Many Americans hold the mistaken belief that Medicare and Medicare Supplemental Insurance will cover Long-Term Care but at best, Medicare will only cover a part or all of the first 100 days of care. The lions share of all Long-Term Care costs is paid out of your own pocket. Once those assets have been spent down to the applicable poverty level an individual may qualify for Medicaid...a government Long-Term Care program.
Against this backdrop, Long-Term Care Insurance (LTCI) has become one of the fastest growing insurance products in the country. Fortunately LTCI can be designed to fit almost any budget. Most LTCI policies share some common features you should know and should be looking for:
1. Benefit Amount: How much will the policy pay?
2. Benefit Triggers: When will the policy pay benefits?
3. Inflation Protection: Will the purchasing power increase?
4. Level of Care: Are Custodial and Intermediate Care covered, along with Skilled Nursing Care? Is Home Health Care covered?
As with any form of insurance, the policy is only as good as the ability of the insurance company to pay your claim. Check out the financial strength and reputation of the insurance company and seek competent legal counsel to interpret the contractual provisions of any LTCI policy before you sign on the dotted line.
