Do you need Long-Term Care Insurance? Probably, unless you have little or no income or assets. If you are Jeff Bezos, you might consider self-funding; however, many wealthy people find huge value in owning a policy to help alleviate the burden on their family and avoid tax consequences.
You might not need insurance but everyone needs a plan for declining health and the consequences of aging.
Few people spoke openly about Long-Term Care Insurance twenty years ago. They were buying it, but it was not something you discussed with friends and family.
Today you hear many conversations about long-term health care, LTC Insurance, and other aging issues. Perhaps it was because the COVID-19 virus crisis put long-term care in the news every night. While the news coverage put long-term health care front and center, many American families had loved ones that were either needing care or providing care.
Who Does Not Need LTC Insurance?
So, who needs Long-Term Care Insurance? Let's start with who does NOT need LTC Insurance. If you have little or no income and assets, you will qualify for Medicaid. Medicaid is the primary payer of long-term care services and supports in the United States. However, you must have little or nothing to qualify for those benefits.
You may see advertisements about how you can do 'Medicaid Planning' and attempt to qualify for Medicaid when you are not poor. Understand that Medicaid should never be the goal. Unless you are near or at the poverty level, the government will not be paying for your care. In addition, Medicaid will only pay for approved providers, mostly nursing homes. The quality of the care provided is often questionable because of the low reimbursement rates from the government - Medicaid is Never the Goal or Solution for Long-Term Care Planning | LTC News.
On occasion, the adult children will purchase a Long-Term Care Insurance policy for mom or dad even if they have little assets. The kids want to provide their parents with quality care options, something often Medicaid will not provide.
Got a Million? Maybe You Don't Need LTC Insurance?
What if you have millions of dollars of assets? Do you need Long-Term Care Insurance? Maybe, depending on how your assets are invested, it might be best to have a policy instead of selling off businesses, stocks, bonds, or other assets. Even if you had a lot of money sitting in cash, do you want to use your money? Who would decide how you will be taken care of and where you will receive your care? Will they make the same decisions as you would make?
If you have over $10 million, you could consider self-funding your future long-term health care. However, many wealthy people decide spending a small amount of money for tax-free insurance benefits makes more sense than using their money and still creating a burden on your family - Millionaires Should Have Long-Term Care Insurance | LTC News.
Plus, most Long-Term Care Insurance policies include case management to help your family find quality care providers. This benefit is not case management, but the benefit provides professional guidance to help your family make sure you get the quality care you want and deserve.
The Very Top and Bottom Might Pass
If you have less than $50,000 in savings, Long-Term Care Insurance is probably not for you (although those who have high-income pensions with little savings should consider coverage).
If you have more than $10,000,000 in assets, you might consider self-funding, but you may find it more economical and easier on your loved ones to have a policy in place.
Otherwise, yes - you should consider a Long-Term Care Insurance policy. LTC Insurance is custom designed so you can fit your coverage to fit your needs and concerns.
Long-Term Care Insurance is Often Affordable
Premiums are affordable for most people, especially if you obtain coverage in your 40s or 50s when you still enjoy reasonably good health. Be sure to seek the guidance of a professional Long-Term Care Insurance specialist to help you design an appropriate plan and choose the insurance company that offers you the most benefits at the lowest cost.
Long-Term Care Insurance premiums vary widely from company to company - over 100% for the same coverage. Be sure to find a specialist that works with the top companies - Work With a Specialist | LTC News.
But - Do You Need LTC Insurance?
But, do you need Long-Term Care Insurance? If you are asking if you will need long-term care, that is a different question. You will either need long-term care - or you won't. Sure, the older you get, the more likely you will need help with daily living activities or suffer from dementia. People require long-term health care due to an illness, accident, mobility problems, or the frailty of aging.
Aging happens, and our health will decline. Better be prepared and reduce the stress and anxiety otherwise placed on those you love.
Long-term care is a cash flow problem, but it is also a family problem. When you own a Long-Term Care Insurance policy, you will own a solution. Better to have a solution than to have chaos.
Quality Care Options
Who needs Long-Term Care Insurance? Sure, most people want to protect income and assets - preserving lifestyle and legacy. Few people want to burden their family members by making them responsible for caregiving. But - the choice of quality care options is also vital.
When you own a Long-Term Care Insurance policy, you own a solution. You maintain control. You get your choice of quality care - be it at home or in a quality facility like assisted living.
You could be dependent on others for everything - or you could own a plan to maintain choice and control. LTC Insurance gives you that choice and control. Plus, many policies offer professional care management, so your family gets help developing an appropriate plan of care and finding quality care options.