According to a recent article by journalist Megan Hart for cjonline.com, she noted that although Kansas has seen long-term care insurance premiums rise as much as 60%, this policy makes sense for those with assets to protect in retirement.
You have probably heard a number of stories about long-term care insurance premiums going up, often double-digit increases. There is a good explanation for this phenomenon.
The fact is, we are living longer, and the smart ones that get the benefit of long-term care insurance protection are keeping their policies longer. Some insurance companies that priced long-term care insurance many years ago based their models on people not living as long, and letting their policies cancel.
This is no longer the case for long-term care insurance protection. Long-term care insurance covers health and medical needs not found in Medicare or disability insurance. The items long-term care covers are nursing home services, assisted living services, in-home care, and/or adult day services.
The confusion over long-term care and Medicare comes from one specific Medicare benefit. According to Hart, “Medicare covers short-term nursing home care only after a beneficiary has been hospitalized.” This benefit is also limited to 100 days of care.
Where long-term care insurance steps in is when the condition is chronic, i.e., stroke, certain types of cancer that require living assistance, dementia, Alzheimer’s, MS, and many other health conditions that can prevent a person from being able to perform certain activities of daily living independently.
These activities of daily living are the ability to dress, bath, eat, and care for yourself without assistance. The most shocking statistic we have read to date is that 70% of people age 65 and older will require some form of long-term care health assistance.
It is possible to qualify for Medicaid (Government Help) to pay for long-term care services in a nursing home, but the typical asset limit to qualify is under $2,000. So, if you are someone that has been able to save a nest egg, and you would like to protect it, long-term care insurance could be the shield that protects your nest from financial destruction.
Getting the conversation started about long-term care insurance is easy and only takes a few minutes. Start now filling out the form to the right of this page and by contacting your licensed California Long Term Care Insurance Services specialist today!