Let’s say you’re approaching retirement. You suddenly recall that family members from your parent’s generation had trouble paying for nursing care, both at-home and in assisted living facilities. It was a real nightmare, something you’d like to avoid. You may be wondering if long-term care insurance will help.
Will I need long-term care?
It’s impossible to predict that with any certainty.
However, about 52% of people aged 65 today will require long-term care at some point. That number is slightly higher for women (58%). Costs for long-term care range from around $30,000 annually for in-home care to over $70,000 a year to live in a nursing home.
The term ‘long-term care’ encompasses a wide variety of services, from home care to residential care to institutional care. It’s very likely at some point in your life, you will need some form of long-term care.
How will I pay for this level of care?
Generally, there are three ways to pay for long-term care:
- Public benefits like Medicaid; or
- Long-term care insurance.
Self-paying for nursing home care can wipe out your life savings. Applying for public benefits may seem easy, but the application process is complicated. The potential for failing eligibility guidelines is real.
Will insurance help?
Some insurance products offer coverage for long-term care. Like most insurance policies, however, you’ll need to apply and pay premiums if accepted. Insurance benefits could go a long way toward covering the cost of care.
But sometimes insurance companies refuse to insure people who have pre-existing medical conditions or who are beyond a certain age. Premiums may rise and the level of care you need may be excluded from coverage. Still, long-term care insurance may be worth checking into. You may find a policy that suits your needs, or discover there are other options available to you.
For example, the Alabama Long-Term Care Insurance Partnership Program (“Partnership Program”) provides Alabama residents with a different approach to alleviate the financial hardship of long-term care. Purchasing a Partnership Program policy also offers an opportunity to protect some assets if it becomes necessary to apply for Medicaid.
Make Long-Term Care Part of Your Estate Plan.
An attorney with elder law and estate planning experience can assist with long-term care planning. Schedule a free consultation with the attorneys at Adams Miller, LLP. We know how to evaluate your needs and offer advice. Just give us a call at 256-251-2137 or use our Contact Form to set up an appointment. Serving clients in the greater Anniston and Birmingham areas.