| Providing for adequate health care is one of | | | | buying it. |
| the top concerns for today's seniors. And | | | | |
| yet, many find themselves coming up short | | | | If purchasing long term care insurance isn't |
| when that need is for long term care. With | | | | an option for you, there are still some |
| costs skyrocketing and government purse | | | | strategies you can use to cover that care |
| strings tightening, planning for such care | | | | should you need it. Selling your life |
| has never been more important. Don't let long | | | | insurance policies, called a life settlement, |
| term care costs take you by surprise. | | | | is one option. Reverse mortgages can also |
| | | | free up needed cash. Selling your home, |
| The gap that exists between what seniors need | | | | however unpleasant that may be, can also |
| in long term care and what Medicare and | | | | provided needed funds. But in all of these |
| Medicaid will cover is huge. Combine that | | | | strategies it is better to leverage those |
| with the proposed Congressional bill | | | | proceeds by using them to buy long term care |
| restricting Medicaid nursing home coverage, | | | | insurance, if possible. |
| and it's clear to see that seniors and those | | | | |
| nearing retirement simply can't afford to | | | | But for now, let's consider some issues that |
| ignore this important issue. | | | | none of us like to think about, but will |
| | | | greatly influence how we each address our |
| How you approach your long term care needs, | | | | long term care needs. When someone is no |
| which include custodial and skilled nursing | | | | longer able to care for themselves, usually |
| in-home care, assisted living facilities and | | | | the healthy spouse, if there is one, will |
| nursing home care, depends greatly on your | | | | take over the care. Few seniors, wealthy or |
| economic situation. For those with low | | | | not, are quick to dip into their savings to |
| incomes and little assets, there are few | | | | hire nurses or other care givers to help out. |
| choices. Most likely, should the need for | | | | |
| long term care arise, you'll quickly spend | | | | The result is that the healthy spouse often |
| down your assets and easily qualify for | | | | sacrifices their own health and well-being to |
| Medicaid. | | | | care for the sick one. We've all seen it |
| | | | happen, how the 'healthy' spouse becomes |
| For those with an annual incomes exceeding | | | | exhausted and emotionally spent trying to |
| $75,000 and with assets of $500,000 or more, | | | | meet the overwhelming needs of the other. |
| you could simply pay for it out of pocket. | | | | |
| But with nursing homes costing thousands of | | | | If they're lucky, their adult children will |
| dollars a month and some seniors needing | | | | step in to help shoulder the burden. Some |
| years of such care, even a well-lined nest | | | | families have gone on like this for years, |
| egg could experience a drastic drop in value. | | | | with sons and daughters spoon feeding their |
| A more prudent approach would be to purchase | | | | parents and changing their diapers. The |
| long term care insurance and use that to pay | | | | emotional toll on the family in these |
| for any long term care you or your spouse may | | | | situations is indescribable. |
| need. | | | | |
| | | | How much easier life is when seniors take |
| The real conundrum exists for those seniors | | | | active steps to provide for this care |
| of moderate means, those with incomes between | | | | properly. Then the family can spend their |
| $30,000 and $50,000 who have a few hundred | | | | emotional and physical strength on cherishing |
| thousand dollars in assets. Long term care | | | | their loved one, without ruining their own |
| needs could gut your life savings and | | | | lives in the process. |
| impoverish the healthy spouse. But long term | | | | |
| care insurance can be very expensive and hard | | | | No one can predict with certainty how their |
| for these seniors to afford. | | | | end-of-life will go. But the fact remains |
| | | | that nearly half of all seniors will need |
| Long term care insurance is complicated and | | | | nursing home care. Those who don't are likely |
| there are many issues you must understand | | | | to need some kind of outside help. Plan now |
| when considering it. My next article will be | | | | for how you're going to provide for your long |
| devoted purely to better understanding long | | | | term care. Your health, and the health of |
| term care insurance and what to look for when | | | | your loved ones, depends on it. |