Many people aren’t planning for their future long-term care needs because they think the government will pick up the tab. In reality, that’s just not true unless you are eligible for Medicaid (generally those with less than $2,000 in assets). Given that about 70% of people over age 65 will need some type of long-term care in their lifetime, according to the U.S government, this is a serious mistake to be making. Here’s why.
Medicare limits coverage for long-term care services. Generally it will cover home care if it is part of recuperation—that is, you’re expected to get better soon. If you receive care in a facility, they may cover only the first 20 days. From day 21 to 100 you are responsible for a large daily copayment, currently a little over $150 a day. Medicare does not provide any benefits after 100 days. Then what?
That’s why it’s so important to consider long-term care insurance. It pays for a wide range of services and support that typically aren’t covered by medical insurance or Medicare. The types of care it covers fall into a range of services from having in-home help all the way to nursing home care. In addition to protecting retirement assets and providing options for care, most long-term care insurance policies come with care coordination benefits. This means that at the time of claim, a specialist will assist you in finding the appropriate care services and establish a plan based on your preferences and needs.
Because this type of insurance can be complicated, it makes sense to sit down with a specialist, or speak with a Colonial agent, who can walk you through your options and find a solution that fits your budget.
All insurance products are subject to terms, conditions and exclusions not described here; we can answer any questions you may have.