Obtaining and maintaining long-term care insurance is an expensive undertaking, so be sure you gather as much information as possible before you commit to a plan. The following paragraphs contain three things that you should know about long-term care insurance.
First, while purchasing this insurance is not right for everyone, you should know how your care will be paid for if you forgo purchasing insurance but wind up needing long-term care. If this occurs, you will be paying for your care out of your own pocket, for as long as your personal money tree bears fruit. Then, after you’ve dwindled your assets down to $14,000 (although your house isn’t part of this tabulation), you may qualify for Medicaid; if you do, the government will begin to pick up the tab for your care.
Second, the costs associated with this insurance are high; therefore, if you have waited until the last moment to begin building your retirement, or you’re just not sure whether not you can afford even a moderately healthy retirement, then this is one cost that you cannot afford to bear. How expensive is it? If you and your spouse are around 55-years-old, long-term care insurance will cost you anywhere between $2,000 to $6,000 a year, every year, until you either lose or use your coverage.
Third, this is not like ordinary insurance. This insurance requires you to pick a specific amount of coverage, then once the plan pays out that amount, the golden egg disappears and you’re left to pay for care the same way as anyone else would.
The Law Office of Michael Robinson, P.C. is a member of the American Academy of Estate Planning Attorneys.