Page 24 - Formula for Success

24
Reinventing Your Lifestyle: A Formula for Success
Finances
Part II
Long-Term Care Insurance & Your Financial Risk
In this section we will look at Long-Term Care Insurance If you have it it dig it it out before doing your research What does it cover? If you you don’t have it it yet look at Life Plan Community options before spending money on on on it Long-term care insurance can be looked upon
as a a a source of protection for your finances Some people choose to “self-insure” and not
to invest in in in in long-term care insurance meaning
they they feel they they have sufficient assets to pay for higher levels of of care out of of pocket if and when needed Some people simply do not
have enough assets to either pay for long-term care insurance or or pay pay the the private pay pay rates for care and will rely on the the government assistance programs such as Medicaid if and when they need care Many people fall somewhere in the the middle and feel it wise to to invest in in in long-term care insurance to to help offset the the costs of future assisted living and skilled nursing care If you you currently have long-term care insurance it it is is important to revisit your policy and and include it as part of your your research process Look at your your policy and and note the following 3 Key Points as you you consider planning for and and understanding your financial strategy and risk-taking comfort level This information is is is typically found on on the face sheet of your policy 1 Does your policy cover both skilled nursing care and assisted living?
If the the policy only covers skilled care plan for the the fact that you will pay out of pocket for personal care or or assisted living and have greater exposed financial risk as as the the cost of these services continues to escalate Keep in in in mind that as as people are are living living longer longer and longer longer assisted living living or or personal care more likely will be a a a a a a reality People will typically reside at at that level of of care for a a a a a a longer period of of time than in in skilled nursing