Do you need to buy long term care insurance policies? Statistics show that after the age of 65, seven out of ten Americans will need some sort of personal care and assistance. On average, the need for long term care will last for about three years. If you do not have a definite long term care plan, you will be forced to pay out of pocket. Considering, the cost of long term care these days, three years is a pretty long time. It can drain your life savings or worst leave you bankrupt.
LTC Services Included In Long Term Care Insurance Policies
In the United States, insurance providers offer different types of long term care policies. These insurance products cover expensive long term care services provided at home, in nursing homes and assisted living facility. Included in most policies are the services of health care professionals, therapists, caregivers and companions. For you to receive the benefits, you must need help with at least two of the five activities of daily living like dressing, bathing, eating, getting in and out of bed or going to the bathroom. With that said long term care services are needed not just by the elderly but also those individuals who are unable to perform such tasks because of chronic medical condition or injury.
Will The Government Pay?
Many are confused whether the government will fund for long term care. Medicare, which is the United States’ national social insurance program, may pay for limited nursing assistance after you have been admitted to the hospital. However, it will not cover long term care services needed by someone with chronic disease.
Medicaid, on the other hand, does cover long term care assistance. Before, you qualify for Medicaid’s long term care benefits you need to have limited number of assets. In most, states, an individual should have less than 2,000. Moreover, your income should be limited as well. The income criterion varies widely among the states.
Long Term Care Insurance Partnership Program
Sadly, many are still reluctant to buy long term care insurance because they feel that it is only a waste of money. Others thought that Medicaid is the only option that they have. Unfortunately, not everyone can take advantage of Medicaid’s long term care program. The states together with some private insurance companies come up with a solution on how to encourage people to buy long term care insurance policies.
The long term care insurance partnership program is a win-win for both the policyholder and Medicaid. The program provides asset protection in the event that you have completely used all your LTCI plan benefits. With the long term care insurance partnership program, you can qualify for Medicaid assistance even without spending down your assets.
Without a crystal ball, it is difficult to tell the future. However, if you plan early for long term care, you can avoid making sudden decisions about your health. If you still can, take time to think about long term care and the different ways you plan to pay for LTC services. You can talk to a financial expert or LTCI agent and discuss about how long term care insurance policies can benefit you.