Planning For Later

The statistics for expenses incurred at care giving nursing homes and doctor visits for seniors are quite shocking. Long term care means your bill can go up to $300/day which means that in year you can spend about $50,000 quite easily.

You have three options when it comes to paying for this type of care. The first is to be self insured, the second is public assistance and the third is long term insurance.

In the first case people who have a steady income from various sources can use this and they need not dip into their assets. There are others who gradually build up a liquid investments fund which they can tap in case of requirement. However the problem arises when you have not had enough time to gather funds large enough to cater for these expenses or when your funds run dry.

Some argue that family may help but with family and a support system there are some things to keep in mind. Would you be happy being dependent on a family member for your monetary needs?

The second option is public assistance where you need to know that Medicare does not cover long term care and home care. If your requirement is for skilled nursing then only the first 100 days are paid for by Medicare. But required home health visits that are needed on medical grounds are paid for by Medicare. To qualify and apply for public assistance you have to use up all your assets first.

Primary in public assistance is Medicaid. Here community based care and long term nursing home stay is covered. Qualification for Medicare depends on what your financial state is in term of assets.

The last option is long term insurance which is by far the best way to avoid financial setbacks while your health takes a setback. You can set up a balance between premiums you can pay and how much coverage you are looking for. The policy you buy can be for nursing facility or even for home care. But buy these while you are younger because the older you get the higher the premium. This is good idea for those who would like to keep their family free of this burden and those who like to keep their finances jeopardy free.

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