May 16, 2017

There is a good chance that you’ll need help at some point in the future with everyday tasks like eating, dressing and bathing. You may also need medical care over an extended period of time. 

A 2005 study indicated that 69% of those individuals aged 65 and beyond will need long term care at some point in the future. However, many people are not prepared with how to plan for it and how to safeguard against the potential decimation of their own retirement and savings as a result of a long-term care event.

Many people assume that Medicare will help pay for any long-term care expenses. But the truth is that Medicare does not cover most long-term care expenses because these are not classified as medical treatment. While Medicare will pay for the first 100 days of care in a nursing home, and Medicaid will cover some of the costs of long-term expenses, the Medicaid program is intended for low-income individuals and will not begin until your income is below the state threshold. Retirees with a lot of assets or with high income may never qualify for Medicaid without an advanced planning strategy, so long-term care insurance can be a huge assistance.

While premiums can be very high, signing up for a policy now while you are young and healthy is strongly recommended as this gives you the best chance to get a lower premium. Long term care insurance can give you peace of mind that your assets will be protected and that you have a safety net should something happen to you. In addition, it is strongly recommended that you consult with an elder law attorney about your future planning options for government benefits and your own retirement.