Long-Term Care = old people?

Most people think that Long-Term Care is for old people only, but it is not true.  According to the U.S. General Accounting office, 40% of those receiving care are adults between ages 18 and 64. 60% of people age 65 and older may need Long-Term Care at some point in their lives.

Who pay for Long-Term Care?

A person could be self-insured for everything if he is extremely wealthy. However, with the cost of more than $55,000 per year, how long can your saving and asset last? And, how does the unexpected high cost of care affect your retirement?

A lot of people think that Long-Term Care is covered by Medicare. The fact is that Medicare only pays a very limited amount for skilled nurse care such as nursing home. Moreover, it only pays for the full cost for 20 days, and a minimal coverage of $133 per day for the next 80 days. There is no coverage after 100 days.

Medicaid is another source of paying for care. However, Medicare is decided for the poor people. A person is not qualified for Medicare until most of his personal assets are used. That means none of the wealth can be passed to the spouse or next generation.

What about health or medical insurance?

Unfortunately, medical insurance only pays for skilled acute care. It covers expenses such as hospital stay or doctor visit. However, it does not pay for assistance with daily activities.

What does Long-Term Care insurance do?

Long-Term Care insurance is the best way to plan and prepare for any Long-Term Care needs. Long-Term care basically gives you a pool of money that can be used for getting care. It can protect your income, assets and retirement saving. Avoid dependence on family members. Access high quality care and maintain quality of life. Some insurance might even pay for your neighbor or relative for providing care to you.