Specialist, LTCi, DI, Annuities, Life, Designs In Life, LLC, Utah
Long-term Care Insurance is not an option for those with low net-worth and/or an inability to pay the premiums associated with a base plan of insurance. The insurance company offering long-term care insurance is placing itself it a very risky position. Costs for those that go on claim could be in the thousands of dollars, far exceeding total premiums paid in by the insured. It is also something that is becoming more and more likely to happen as people live longer...but, not necessarily better. So, the costs to insure that risk are justifiably high.
But, one should have a plan in place, even if insurance is not part of that plan. It is imperative for families to get together and work out how care will be administered, how formal care might be paid for, and whether the elderly person might qualify as "indigent" for Medicaid/Medical payment of costs. If the latter, the elderly person can keep their house, a car, some personal property, but must liquidate most other assets. Income must be lower than about $40/month and total liquid assets cannot exceed $2000 (those figures are subject to change each year). Each state has its own rules about Medicaid, so potential caregivers should have a good working knowledge from the state website on those rules, limitations, and benefits.
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But, one should have a plan in place, even if insurance is not part of that plan. It is imperative for families to get together and work out how care will be administered, how formal care might be paid for, and whether the elderly person might qualify as "indigent" for Medicaid/Medical payment of costs. If the latter, the elderly person can keep their house, a car, some personal property, but must liquidate most other assets. Income must be lower than about $40/month and total liquid assets cannot exceed $2000 (those figures are subject to change each year). Each state has its own rules about Medicaid, so potential caregivers should have a good working knowledge from the state website on those rules, limitations, and benefits.