Monthly Archives: July 2014

Do I Need Long-Term Care Insurance?

July 8, 2014

If you think Medicare is going to cover your long-term care expenses, think again. In fact, Medicare generally only provides coverage for the first 100 days after a qualifying hospital stay (and even then, the patient incurs co-insurance charges for days 21-100). So how are people paying for the long term care services that they need?.

One option for paying for long-term care is private long-term care insurance. This type of insurance provides coverage for a wide range of services not offered by Medicare. Premium costs, covered services, benefit periods, benefit payouts, and triggers for service coverage are all important considerations to think about when purchasing a long-term care insurance policy. Since its main function is to protect assets, it is critical for an individual to evaluate whether or not purchasing such a policy is a prudent decision.

In determining whether long-term care insurance will be beneficial, an individual must look at both the policy itself and their assets to be protected. Depending on age, medical condition, medical history, and the level of benefits purchased, premiums for long term care policies can cost anywhere from $800 to $6,000 per year. If an individual has minimal or no assets, it is unlikely that long-term care insurance would be cost-effective.

The attorneys at Frank, Frank and Scherr can assist in understanding the many complex legal issues involved with purchasing a long term care insurance policy. They can also advise on alternatives to private long-term care insurance, which may include applying for public benefit programs like Medical Assistance. The attorneys at Frank, Frank and Scherr can evaluate which asset protection tools would be most beneficial by working with clients and developing plans to maximize the preservation of assets. By reviewing particular circumstances, our attorneys develop a plan that is tailored to the client’s specific needs in order to minimize the costly effects of long-term care.