The Wise and the Wary
Who can you trust? Deb hears this question over and over again in her professional practice as an elder law attorney and a fee-only, holistic financial planner. Let Deb teach you how to protect yourself and your assets from those who might not have your best interests at heart. [Editor's note: Deb no longer contributes to Silver Planet, but we have made her archived blog entries available as a service to our readers.]
Long-term Care Insurance: Some Initial Thoughts
Let’s start with some assertions that may not be obvious
This month’s blog postings are about long-term care insurance. Do you need it? How much will it cost? What are some options for financing it?
First, let’s start with some assertions that may not necessarily be obvious to all:
- Your children generally are not legally responsible for paying for your housing or personal care.
- Neither is your government.
- Medicare and Medigap insurance policies generally do not pay for your housing or personal care.
- Medicaid programs don’t “take everything” when you need nursing home care. You do have to pay the facility for room, board, and care. Medicaid will step in and take over those payments, however, if you choose to apply for this assistance and if you satisfy your state’s eligibility requirements.
- Not everyone will need long-term care. In fact, three of 10 people turning 65 today will not need it. However, if you are one of the remaining seven who will need care, this blog’s for you.
The typical progression of long-term care needs—which involve getting help with personal care and activities of daily living—begins with care provided by family and friends, usually offered free. This is followed by home health care provided by a nurse or personal care aide, followed by residence in an assisted living campus, followed by placement in a skilled nursing home facility. This, of course, assumes the existence of a chronic or progressive illness. A stroke or head injury can move you from independent living to a permanent nursing home in no time at all.
Next week, we’ll review the latest statistics on need and usage of outside care.
By Deborah Hoskins, JD, CFP
The Wise and the Wary Blog
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