Mountain View Insurance – Long Term Care Insurance
Nearly 3 out of 4 people will require some sort of long term care assistance in their lifetime. As medicine improves and the average lifespan increases, long term care considerations become even more important. If you have begun to plan for your retirement then you should consider the options available through long term care insurance.
Long Term Care Insurance – The Purpose
The Purpose of Long Term Care Insurance is to provide a safety net in case you require long term care assistance during your lifetime. LTC assistance can be very costly and you can hedge this risk through a properly designed long term care insurance policy.
Long Term Care Insurance – Elimination Period
Long Term Care policies have a built in elimination period which means that the policy benefits would not begin until that period is through. Often this period is around 90 days. So if you have a long term care event you will have to wait until the elimination period has come to end.
Long Term Care Insurance – What About Medicare and Medicaid?
There is a lot of confusion surrounding what the government will assist with during a long term care event.
As of 2018, Medicare Part A covers “skilled nursing confinement” for up to 20 days, following an inpatient hospital stay of at least 3 days. You also have to enter a “Medicare-approved” skilled nursing facility. If you are covered for this and stay after the 20 days, then a $170.50 copayment is required daily. This fee potentially can be waived through a Medicare Supplement plan. This scenario is for a “skilled nursing confinement” which is technically not a long term care environment. Medicare has limited coverage for a true long term care situation.
Medicaid can provide assistance in the event of a long term care event but that is continent upon “spending down” the majority of your assets. There are very strict guidelines associated with the amount of assets you can hold to be eligible for Medicaid.
The point of a properly designed long term case insurance policy is to take these scenarios and risks out of the equation so that you can live confidently and even pass a legacy on to the next generation.
If you would like to speak with us about your long term care options or have any related questions feel free to call Jesse Cunningham IV directly at (443) 629-4600 or fill our the form below.