Part of wise long term care plan is a good method on how to pay for long term care. Different people have different financial capabilities and care requirements, so what works for another person might not work for you.
Many people often struggle with choosing the best option for paying for long-term care. So to narrow your choices, here are three long term care payment options that will make care easier to manage.
Self-insurance
Self-insuring pertains to paying for the care that you receive out of your own pocket, either through savings and other assets. While it may be a good option for short-term coverage, self-insurance can significantly deplete your resources.
Government Programs
Medicare and Medicaid are government programs designed to help fund specific care requirements.
On one hand, Medicare is federal-state insurance that provides a limited coverage of 100-day maximum stay at a nursing home for rehabilitation care. It caters to individuals age 65 and older, younger generations with certain disabilities, and people with late-stage kidney failure.
On the other hand, Medicaid covers long term care services, but individuals need to be below a certain income level defined by the state in order to qualify.
Long Term Care Insurance
Long-term care insurance is a product specifically designed to assist policyholders in playing for all levels of long-term care in different care settings. Policies can be tailored to fit the person’s ltc needs and preferences.
Those who are still asking if should they buy a long term care policy have to make up their mind fast because premiums greatly depend on age and health status. Waiting too long to buy a policy has consequences that will make it nearly impossible to pay for expensive long-term care and health care costs. The best time to purchase a policy is at an earlier age when you’re in your 40s and 50s to enjoy health discounts.
Aside from long term care insurance premiums, another factor that people should consider when buying a policy is the insurance companies. It pays to read reviews and ratings of long term care insurance companies first to find a reliable insurer.
Is health insurance an option?
Health insurances generally do not cover long term care services. Verify with your insurer to determine the coverage extent of your health care policy.
