How Long Term Care Insurance Protects Your Assets

Many people believe that Medicare or health insurance will cover long-term care costs such as nursing homes, assisted living, or in-home care. However, Medicare (as well as most other forms of health insurance) generally does not cover custodial care, which includes most long-term care services such as assisted living facilities, nursing homes, and in-home nursing.

Typically, if you require long-term custodial care, you will have to pay out of pocket unless you have long-term care insurance.

The primary reason people opt for long-term care insurance is that it is often the only way to affordably cover these significant expenses, which can include a variety of services not covered by traditional health insurance or Medicare.

Delaying the Onset of Medicaid

While Medicare and health insurance do not cover long term care, it is possible to receive long term care through Medicaid. One of the problems, however is that if you have financial assets, you may not qualify for Medicaid. This is where long term care insurance comes in.

In addition to alleviating the financial burden of long-term care, long-term care insurance also provides a safeguard against the risk of depleting personal assets to qualify for Medicaid. Medicaid requires that individuals exhaust most of their liquid assets before offering assistance, though specific eligibility requirements vary by state. That means that if you need long term care and you do not have long term care insurance, you have to spend your own retirement until it has been depleted before you can receive any care – and it may not be the care that you desire.

Protecting Your Assets for Your Family and Loved Ones

Current regulations require that to qualify for Medicaid, individuals must significantly reduce their countable assets. This can mean spending down savings to a state-defined threshold, which can be financially devastating and take cash away from you and your family.

Long-term care insurance thus serves as a crucial financial tool, helping cover the costs of care and allowing individuals to preserve their assets for longer – potentially passing on an inheritance or simply maintaining a quality of life. This protection is invaluable for those looking to secure their and their family’s financial wellbeing against the high costs of long-term care.

If you have any questions about long term care, contact Long Term Care Resources Pacific Agency, today.

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