Kendall and Bexar County Estate Planning
Texas Estate Planning Blog
Forbes’ recent article entitled “Is Long-Term Care Insurance Right For You?” says that a big drawback for many, is the fact that LTCI is expensive. However, think about the costs of long-term care. For example, the current median annual cost for assisted living is $43,539, and for a private room in a nursing home, it's more than $92,000.
Another issue is that there's no way to accurately determine if in fact you'll even need long-term care. Much of it depends on your own health and family history. However, planning for the possibility is key.
Remember that Medicare and other types of health insurance don't cover most of the cost of long-term care—what are known as "activities of daily living,” like bathing, dressing, eating, using the bathroom and moving. Medicare will only pay for medically necessary skilled nursing and home care, such as giving shots and changing dressings and not assisted-living costs, like bathing and eating. Supplemental insurance policies generally don't pay for this type of care.
Those with a low net worth might qualify for long-term care provided under Medicaid.
Shop around, because policies and prices are different. Check the policy terms and be sure you understand:
Typically, when you are between 50 to 65 is the most cost-effective time to buy LTCI, if you're in good health. The younger you buy, the lower the cost. However, you will be paying premiums longer. Premiums usually increase as you get older and less healthy. There's a possibility that you'll be denied coverage, if your health becomes poor. Therefore, while it's not inexpensive, buying LTCI sooner rather than later may be the best move. Remember too, this is only one part of your overall estate planning, and other tools might be a good idea to implelent.
Reference: Forbes (April 17, 2020) “Is Long-Term Care Insurance Right For You?”
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