Long Term Costs

If you have been meaning to learn about long-term care costs, today’s blog is just for you.

The majority of Americans don’t have a plan when it comes to paying for long-term care. In fact, many Americans simply live their lives hoping they won’t need it. But in the event that you or your loved ones do need long-term care, there are options for covering the costs.

Self-Insurance

When a person self-insures, they pay for the costs themselves and have sufficient income to cover the costs. Keep in mind that although a person may be able to pay for long term care out of pocket now, they may not be able to in the future due to rising costs.

Medicaid

Medicaid is a joint federal and state program that covers medical bills for the needy. If you qualify, it may help you pay for long-term care costs. But, to qualify for Medicaid, you need to have few assets or have to spend down your assets. The state laws determine income and resource limits.

To get Medicaid assistance, you may have to transfer your assets to meet those limits. But this can be complicated because there are laws made to discourage asset transfers for the purpose to qualifying for Medicaid. We highly suggest meeting with an advisor such as us at Federal National Funding to discuss new Medicaid rules. If you would like to learn more about Medicaid, click here.

Long-Term Care Insurance

This type of policy can help transfer some of the economic liability of long-term care to an insurance company in exchange for regular premiums. Long-term care insurance can help pay for skilled care, intermediate care, and custodial care. Most policies pay for nursing home care, and comprehensive policies may also cover home care services and assisted living. Insurance can help protect your family financially from the potentially devastating cost of a long-term disabling medical condition, chronic illness, or cognitive impairment.

A complete statement of coverage, including exclusions, exceptions, and limitations, is found only in the policy.

Long-Term Riders on Life Insurance

A number of insurance companies have added long-term care riders to their life insurance contracts. For an additional fee, these riders will provide a benefit — usually a percentage of the face value — to help cover the cost of long-term care. This may be an option for you.

To learn more about long-term care costs, Medicaid, or long-term care riders on life insurance, click here or call us at 201-342-3300. One of our associates will be happy to speak to you.