Traverse City Long Term Care Coverage
What is Long Term Care? Long Term Care (LTC) is insurance that covers an individual in the event they are no longer able to perform activities of daily living (ADL) such as dressing,bathing, eating, toileting, transferring and continence. As we age or become ill,we may need help dong these daily tasks. Long-term care (LTC) provides people
with these services that, in most instances, are not covered through health and disability policies.
Why You Need It?
Statistics tell us about 70% of people will need some form of LTC after age 65.
Two key factors make LTC insurance critically important:
1. People on average, are living longer. This means the need for LTC is growing
2. Spiraling health care costs. Without LTC insurance your hard earned assets
can be depleted very quickly
As people age they want to stay in their home as long as possible without
becoming overly burdensome to their children. Additionally, for the sake of
dignity they would prefer someone other than their children to bathe and dress
them. LTC assistance makes this possible until additional assistance (i.e. assisted
living) is needed.
There is a general assumption that as we age the government will automatically
take care of us. But that is a dangerous assumption. The quality of care you
may or may not receive is unknown, and the amount you will have to pay for the
services will be determined by your savings and other assets.
It boils down to whether or not you qualify for Medicaid, the government
program designed for people who truly can’t afford private care. A lot of times
people try to cheat the system in order to qualify for Medicaid and avoid the
purchase of LTC insurance by moving assets out of their name and putting them
into children’s name. The government is already having trouble paying for those
on Medicaid. There is a 5 year look back period when you apply for Medicaid.
They will look at your assets 5 years from the time you apply, raising the potential
that you will not qualify under the ever-changing guidelines.
When to Buy Long Term Care Insurance?
There are many opinions on the best time to purchase a LTC policy. If you are
a Dave Ramsey fan, Dave says to buy at age 60. I believe it is best to start a bit
earlier-perhaps mid-50’s-due to the fact that policy rates are lowest at this point.
Keep in mind that the older you are the more likely you are to develop a health
condition that could make you ineligible for LTC, and the more extensive the
annual policy is to purchase.