If you need care would you rather pay with your principal or interest from your principal?
Just Because You Lose Your Health Doesn't Mean You Have To Lose Your Wealth
According to the U.S. Department of Health and Human Services Administration on Aging around 70 percent of people over the age of 65 will require long-term care services at some point in their life. This means they will need assistance with at least two activities of daily living (ADLs) such as eating, dressing, or bathing. Some may need an even higher level of care such as skilled nursing care. According to the latest AOA research, the average woman needs long-term care services for 3.7 years, or 44 months, and the average man for 2.2 years, or 27 months. Who Pays the Costs of Long-Term Care? At present, most long-term care is paid for from: an individual’s own resources, his or her family’s resources, a few types of insurance coverages, or Medicaid. Medicaid is designed to cover the health care costs of a mostly indigent population. In fact, Medicaid uses the federal poverty level to determine eligibility. Medicare covers only the following long-term care service: Skilled Nursing Facility Benefit: After you have been in a hospital for at least three days, Medicare may pay for your care while you recover in a certified skilled nursing facility for up to 100 days. You are responsible for daily co-payment for every day in the nursing home between the 21st and the 100th day. After 100 days the expense falls on the individual.
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“There are only four kinds of people in the world: Those who have been caregivers. Those who are currently caregivers. Those who will be caregivers, and those who will need a caregiver.”
Rosalyn Carter
Long Term Care Allows Loved Ones to Quarterback Your Care Instead of Provide it!
Long Term Care is a subject that is on the mind of many people in America today. History has shown us that parents that do not plan adequately for their long term care needs can ultimately end up sacrificing their income, assets and financial promises that they have made, perhaps irrevocably, to pay for their care. While it may be something you are considering for yourselves, another reason to consider it could be right in front of you: your family. Because long-term care is not typically covered by health or other types of insurance, it is most often provided at home by adult children, other family members, and friends. Even though family members may be the first to step in and want to help a loved one in need, being a caregiver for someone who requires ongoing assistance can be a time-consuming commitment that demands significant hours from multiple people. It may not be a direct cost for you, but it can come at a significant financial, physical, and emotional cost to the caregiver.
If You Ever Need Care, What Plan Sounds Better: Your Plan or the State's Plan?