It is a life-changing event.
Medicare will pay for long-term care expenses for a limited time (typically 100 days). This must be preceded by a hospital stay of at least three days. In addition, Medicare only pays for skilled nursing case, and often times most long-term care is not skilled nursing care.
To qualify for Medicaid your assets must be “spent down” to low eligibility limits.
Most medical plans do not pay for long-term care.
The cost of long-term care depends on what kind of care you need and where you are living when you need the care. Nursing homes cost an average of $266 per day for a private room and assisted living facilities cost about half that amount. Home health care usually runs $20-$100 per hour. As with all health care services, these costs are projected to go up over time. Click on this link to look up cost of care in your area at https://www.genworth.com/about-us/industry-expertise/cost-of-care.html
There is no “magic age” to purchase LTCi. The simple answer is to purchase when you are healthy and when you can afford premiums today AND in the future.
It is important to keep in mind the “cost of waiting”; i.e. the longer you wait to purchase LTCi, the more money you will spend in premiums in the long run AND the more difficult it will be to qualify from a health/medical underwriting standpoint.
Here are some of the services that LTCi can pay for:
To keep up with the increasing cost of care, we typically recommend LTCi policies that include either 3% or 5% automatic compound inflation protection for most applicants.
Independent companies like A.M. Best, Standard & Poor’s, Moody’s and Fitch issue ratings on the financial strength of major insurance providers. The COMDEX rankings and scoring system looks at all of the ratings and assigns a score from 1 to 100, with 100 being the safest and best score. The carriers we recommend have Comdex scores of 90-100. The primary carrier for this program has a Comdex score of 98.
All employees and retirees, spouses/domestic partners, parents, and in-laws. Certain health conditions may affect eligibility.
An application covering health history must be completed. An advisor will walk you through the entire application. The approval process takes 6-8 weeks.
Your premiums will not increase because you grow older, become ill, or make a claim. Your premium may be adjusted only if the premiums are adjusted for everyone in your state, class, or group.
You can pay premiums monthly (via checking account deduction), quarterly, semi-annually or annually. There is a discount for paying once a year.
Please contact an advisor to schedule a no obligation phone consultation with an advisor who specializes in long-term care insurance.