If you are worried about the ever-rising costs of nursing homes or extended care facilities, long-term care insurance is one possibility you may want to consider. While most people will never have to go into a nursing home, the costs associated with even temporary stays can be significant. Here are three common questions many people have about long-term care insurance and how it works.
Do I need long-term care insurance?
Possibly. Long-term care insurance can be a good choice if you have assets that are worth at least $250,000. In this situation, it may be a good idea to obtain insurance in order to protect your assets from having to be sold to cover any eventual nursing home or extended care costs.
Won’t Medicaid cover my nursing home costs?
Yes, but only after you meet strict eligibility criteria. Medicaid sets a specific asset value cap. If you own assets in excess of the limits, you cannot enroll in Medicaid until you have disposed of those assets. Additionally, there is a five year “look back” time limit that applies to any gifts you may have given. If the gifts exceed the asset limit, you also cannot qualify for Medicaid.
What kind of insurance should I get?
That’s difficult to say, as no single plan will apply to everyone. You’ll want to consider the maximum daily benefit the plan offers, how many years the insurance coverage will last, and what the premiums are and how much you can afford.
For help in determining which long term care plan is right for you, we encourage you to meet with Linus Whitlock, our firm’s in house Certified Financial Planner. Call us today at 336.547.9999 to set an appointment.
