An aging parent gets sick, loses the ability to take care of himself or herself and needs home care or nursing home care. While you may think this won’t happen to your family, think again. It is estimated 70% of people over the age of 65 will need some sort of long-term care assistance. Just look around!
Costs of care for an aging adult is expensive. It can eat up entire hard earned retirement savings and put an enormous financial strain on families. Adult children are spending a lot of their own money or quitting their jobs because no one planned for long-term care costs for mom or dad.
Long term care insurance is something that must be purchased before there is a disqualifying medical condition. It is your parents’ health, not their money that allows them to avoid this huge risk.
This is why there must be a conversation in the family before there is a crisis – unpleasant as this may be – because waiting is much more unpleasant!
To get a sense of the cost, nursing home care for a semi-private room in the U.S. adds up to at least $7000 per month in Florida. Home health care is less expensive if the hours are few but can go to $10,000 per month for 24/7 care.
If your parents have high income or a large net worth, they may be able to pay the costs of long-term care on their own. It is the middle-income group that needs to decide whether buying long-term care insurance is the right choice. Since Medicaid is largely a nursing home program, even if we qualify for the benefits, it is not going to cover anything meaningful at home. Traditional long term care insurance is expensive and subject to a premium hikes but still makes sense for some.
As more consumers look for choices beyond standalone long-term care policies, insurers have introduced alternatives including hybrid policies. These policies can include coverage for long-term care and combine it with a life insurance benefit so your parent will have long-term care coverage and family members may also receive a death benefit. Policy terms vary. Clients often say with long-term care insurance, we’re going to pay a lot but I’m not going to get anything. With a life insurance rider, you get something either way which is appealing to people. Regardless of what type of long-term care policy fits your needs here are some suggestions before buying.
If your family’s plan is to seek the help of Medicaid, this requires preplanning in order to shelter any assets that might disqualify the parent. Relying on Medicaid may not be a quick process. Do NOT listen to all the Myths and Legends surrounding Medicaid.
Contact our office today for more information on Long Term Care insurance and Medicaid for Long term care.
