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Simplifying Long Term Care Insurance

What is Long-Term Care? When people considerfederal government has as much said this to
the subject of long-term care, they oftenveterans by encouraging them to purchase
think about nursing homes. In fact, long-termlong-term care insurance through the new
care has little to do with nursing homes.Federal Long-Term Care Insurance program.
Understanding the difference can help youThe result is that consumers are forced to
protect  your  family  and  finances.pay  privately  for  their  care.
The  Consequences  of  Living  LongerUnfortunately, the best thought-out
retirement plan rarely takes into
Long-term care is a continuum of careconsideration living a long life. Put another
services and housing that you will need laterway, those assets and income have been
in life. Think you won't live a long life?allocated to pay for retirement, not for the
Think back 25 years ago. If you had cancer orconsequences of living a long life. This
a stroke, you simply died. Few ever heard ofresults in the need to invade principal and
Alzheimer's.divert income. As a result, one of a
seniors' greatest fear, outliving their
Today, it is the leading cause for long-termassets,  literally  may  come  true.
care services. The longer you live, the more
likely you are to need care. The question isThe  Role  of  Long-Term  Care  Insurance
not who will take care of you, because your
family will most often, but rather what willThe use of long-term care insurance thus
that  care  do  to  your family and finances.becomes an important part of planning for
disability caused by living a long life. The
Long-Term  Care  is  Usually  Custodial  Careproduct has two roles: helping keep families
together and allowing your retirement
Long-term care is defined as needingportfolio to execute for the purpose for
assistance with your activities of dailywhich  it  was  intended,  namely retirement.
living (toileting, bathing, dressing, eating,
transferring from one point to another, andFrom a family perspective, who will provide
continence). It also includes cognitiveyour care? Like it or not, children will play
impairment so severe that the individuala key role. Long-term care insurance (LTCI)
needs  constant  supervision.doesn't replace the need for family
involvement in providing care but rather
If you need custodial care, chances are itbuilds on it. It pays professionals to assist
will be delivered in the community, not in athe person with the toughest tasks such as
nursing home. Many of you have heardtoileting, bathing, feeding and continence.
compelling statistics from The New EnglandThis, in turn, allows the family to provide
Journal of Medicine stating that 43% of thosecare better and longer at home. That leads to
over age 65 will need nursing home care. Whata critical question: have YOU planned for the
the article actually said is that that numberconsequences of living a long life? From a
may spend some time in a facility. The factfinancial point of view, LTCI allows your
is, few end their days in one. Every studyretirement plan to stay intact. That is
conducted finds that care is overwhelminglyparticularly important given the recent steep
provided at home. The key question, ofdecline in portfolio value. The product, in
course, is who is going to pay for it? Whoeffect, protects the balance of your account
Covers  the  Cost?value.
Medicare  &  VALTCI also protects income. Although you may
qualify for Medicaid to pay for nursing home
Medicare, the primary health care program forcosts by transferring assets, your income
retirees pays only for skilled or(pension, social security, IRA and or 401k
rehabilitative care, not custodial care inpayout) cannot be protected. When buying this
any venue. Medicaid, a federal and stateinsurance, look for a long-term care
program for financially needy individualsspecialist. Consider their training,
will pay for custodial care, but primarily ineducational credentials, and commitment to
nursing homes. Funding for home care andhelp solve your long-term care needs. The key
assisted living is very limited and based onis whether they talk first about a plan or a
availability of funds. Veterans believe thatproduct. If they are interested in the plan,
the VA will pay for home care, adult dayyou are dealing with a professional. If they
care, or assisted living. As with Medicaid,focus first on product and price, consider
funding is limited and generally based ongetting another opinion.
service-related disability. In fact, the



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