What’s a Better Alternative to Long Term Care Insurance?
Practically everybody acknowledges the importance of having a long term care insurance (LTCI) policy but only a few people have managed to secure this insurance product as majority of Americans would still welcome the idea of self-insurance.
According to individuals that specialize in retirement planning, you can self-insure if you are well-off but if you need to keep your eight-to-five job in order to make ends meet, you’re better off with a reasonable long term care (LTC) plan.
The reason people are advised to get themselves an LTCI policy is the fact that it is a sure-fire way for them to receive topnotch care someday and protect their assets at the same time. Other LTC plans may enable you to receive quality care but in the end all of your money and other properties will serve as payment.
Now, if your ultimate goal in life is to use all of your money to cover your nursing home expenses or those that you will possibly incur from in-home care then you won’t need to plan your LTC especially if your nest egg sums up to $700,000. On the other hand, if you intend to pass on your assets to your children and spouse then it’s better to consider a plan that will provide you with asset protection apart from high quality LTC.
Who Should Buy Long Term Care Insurance?
Even though LTCI is touted to be among the most important investments to date, not everybody is advised to put their money in this product.
Those who have an income that falls below the poverty level should not worry about their LTC needs because Medicaid is going to be there for them. However, individuals who have lucrative jobs or businesses are discouraged from partaking in Medicaid’s funds for LTC unless they are willing to spend down their assets until they have conformed to the asset threshold of the Medicaid program in their state of residence.
Aside from having to meet Medicaid’s asset requirement, anyone who aspires to be an LTC beneficiary of this federal health insurance program should keep in mind that he can’t make demands. He won’t be provided with a list of choices as Medicaid has to work around a budget.
Simply put, if you are dependent on Medicaid for your LTC needs you cannot choose the facility from which you want to acquire care. You are only allowed to nod to and accept wholeheartedly whatever this insurance program is capable of providing to you.
Although under the new health care reform Medicaid beneficiaries are allowed to receive LTC right in the comfort of their homes or in a community-based facility, the public should not be too expectant because this does not mean that they will be able to receive extensive nursing care should they need it in the future.
There is only one way to keep your independence, pride, and assets and that is by purchasing a long term care insurance policy that is specially designed for your personal needs. Don’t let the premium of a possible coverage discourage you as this is negotiable. Get in touch a licensed LTCI agent in your area.
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