Long-term care is expensive. Unfortunately, many seniors believe they have to exhaust their savings before they can get financial relief. In reality, you have multiple options to pay for your care, whether you’re planning ahead for a future care need or already in a long-term care facility. Allow us to help you explore these options.
With the help of a qualified planning professional, you can protect your life savings and escape the financial burden of long-term care.
* Based on Genworth Cost of Care Survey 2020
As the primary payer of long-term care in the U.S., Medicaid is the best option for those who didn’t plan ahead. Although applicants must meet specific eligibility requirements, we have solutions to help you preserve your life savings while still qualifying for Medicaid.
Unfortunately, many seniors are unprepared for a long-term care need, and they end up paying for care costs out of their own pocket. While those with a high net worth may be able to rely on their personal savings, most seniors will deplete their nest egg in a matter of months.
When planning ahead for long-term care, the best option is Long-Term Care Insurance (LTCI). Most policies cover a variety of care facilities and offer multiple customization options. However, you must be in good health in order to purchase an LTCI policy.
Although you might think Medicare will cover your long-term care costs, the reality is that Medicare only provides coverage in certain situations and for just 100 days. The VA pension benefit also provides some coverage but typically not enough to cover the entire bill.
*This chart represents nursing home payees. Other long-term care expenses may vary.
Many seniors assume Medicaid should be reserved for those with a greater need, but the reality is Medicaid was designed to help pay for long-term care. Whether your loved one has an immediate care need or you are looking to protect your assets for the future, Medicaid can subsidize your long-term care costs, allowing you to get the care you need without worrying about finances.
If you’re relatively young and healthy and are concerned about your future care costs, it’s never too early to purchase Long-Term Care Insurance and insure against the need for care down the road. Although the premiums may seem daunting, it’s a small price to pay to save thousands per month on your future care. Plus, LTCI provides more flexibility in choosing the type of care you want.
* Figures for illustrative purposes only
If you have a substantial net worth, paying out of pocket may be an option for you. However, many seniors fall victim to the assumption that they need to exhaust what they have in order to receive long-term care benefits. In the blink of an eye, their hard-earned savings are diminished. That’s why our main goal is to connect you with a planning professional who can put a plan in place to reduce your care costs while also protecting your inheritance for future generations.
The average stay in a nursing home is 2.3 years1 and the average stay in an assisted living facility is 3 years2.
75% of single individuals will exhaust their life savings within just one year of entering a nursing home.3
50% of couples will exhaust their life savings within just one year of a spouse entering a nursing home.3
Take a deep dive into the long-term care landscape, find out how you can protect your hard-earned assets, and get answers to your most pressing planning questions.GET MY COPY