Currently, one in five Americans experiences the need for long-term care, and as baby boomers age, that number is anticipated to increase substantially.
Medicare currently will cover long-term expenses for those over 65 for the first 100 days of care. If you do not qualify for Medicaid, you will be responsible for covering the entire cost – which is why planning for long-term care before you need it is critical. Factors to consider include:
Age. Many planning experts say the best time to obtain long-term care insurance is 20-25 years before you need it. Your premiums will be lower if you start early.
Elimination period. A majority of people choose to begin receiving their long-term care benefits once their Medicare coverage is exhausted, but you can delay the start of benefits for any length of time.
Benefit period. Many people select a five-year benefit period, since studies show the average long-term care need is 2.5 years.
Benefit amount. You will have to choose the daily benefit amount you want when you purchase your long-term care policy – the average daily cost of a private room in a Florida nursing home is $265, according to the Genworth 2015 Cost of Care Survey.
Inflation rider. Be sure your policy provides enough coverage to make your daily benefits sufficient when you need them years from now.
If you’d like to learn more about how we can help you with your long-term care and Medicaid planning, please contact us for your free initial consultation at one of our conveniently located offices in Fort Pierce, Stuart, Port St. Lucie, Vero Beach, and Okeechobee.