Homecare in Chapel Hill – Is Long-Term Care Insurance Right for You?

March 16, 2016

With rising homecare care costs, long-term care is quickly becoming a scary reality for an aging population that can no longer care for itself. Long-term care can add up to well over $6,000+ a month. It is expensive and can eat away at retirement savings and put a strain on finances. Most families don’t think it will happen to them, but the reality is over 70% of people over the age of 65 will need some sort of long-term care assistance.

The middle class are the ones that really need to make an educated choice about the best insurance for them. Often the highest-income bracket can pay for care on their own care while low-income groups can get Medicaid. If the middle class is opposed to going on Medicaid and willing to accept the risk of premium hikes, it may make sense to purchase insurance. Unfortunately, with the rising health care costs, insurers are raising premiums making policies more expensive to buy. However, the need for long-term care may not be justified since the average stay for a man in a nursing home is just under a year and the average for a woman is just over a year.

Insurers are offering alternative long-term care policies for consumers to consider. Some policies even have a life insurance benefit with long-term care, so that when you pass family members will receive a death benefit. There are a few things to consider before buying insurance. First, make sure you get enough coverage by calculating nursing home costs in your area. Look for policies with inflation protection. Buy a three year term because a longer term probably won’t be necessary. Also, pay attention to the elimination period. A shorter time between when an illness begins and when the first insurance payment is received may cost a little more. Lastly, use an independent insurance broker because they can often negotiate better terms with the insurers.

If you plan to use Medicaid as a safety net, you must have low assets. Medicaid will also look back over the past 5 years from the application date for any asset transfers. If any asset has been transferred during that time, they may be subject to penalties. Medicaid may not be a quick process and you may find yourself very limited to a particular location or the type of room in the facility.

Acorn provides screened and vetted in home care givers.
Our clients have dementia, Alzheimer’s, ALS and other similar conditions.
Call us if you have any questions.
We serve Chapel Hill, Carrboro and other nearby locations.

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