In general, Americans are not sufficiently prepared to pay for long-term care. Many of them go through their lives simply hoping that they won\u2019t ever need it. Unfortunately, in the event that you or a loved one does need long-term care, hope won\u2019t be enough to protect you from potential financial ruin.<\/p>\n
To self-insure \u2014 that is, to cover the cost yourself \u2014 you must have sufficient income to pay the rising costs of long term care. Keep in mind that even if you have sufficient resources to afford long-term care now, you may not be able to handle rising future costs without drastically altering your lifestyle.<\/p>\n
Medicaid is a joint federal and state program that covers medical bills for the needy. If you qualify, it may help pay for your long-term care costs. Unfortunately, Medicaid is basically welfare. In order to qualify, you generally have to have few assets or will need to spend down your assets. State law determines the allowable income and resource limits. If you have even one dollar of income or assets in excess of these limits, you may not be eligible for Medicaid.<\/p>\n
To receive Medicaid assistance, you may have to transfer your assets to meet those limits. This can be tricky, however, because there are tough laws designed to discourage asset transfers for the purpose of qualifying for Medicaid. If you have engaged in any \u201cMedicaid planning,\u201d consult an advisor to discuss any new Medicaid rules.<\/p>\n
A long-term care insurance policy may enable you to transfer a portion of the economic liability of long-term care to an insurance company in exchange for the regular premiums. Long-term care insurance may be used to help pay for skilled care, intermediate care, and custodial care. Most policies pay for nursing home care, and comprehensive policies may also cover home care services and assisted living. Insurance can help protect your family financially from the potentially devastating cost of a long-term disabling medical condition, chronic illness, or cognitive impairment.<\/p>\n
A complete statement of coverage, including exclusions, exceptions, and limitations, is found only in the policy. Long-term care insurance carriers have the discretion to raise their rates and remove their products from the marketplace. A long-term care policy may not cover all of the expenses associated with a person’s long-term care needs.<\/p>\n
A number of insurance companies have added long-term care riders to their life insurance contracts. For an additional fee, these riders will provide a benefit \u2014 usually a percentage of the face value \u2014 to help cover the cost of long-term care. This may be an option for you.<\/p>\n
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The information in this newsletter is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the \u00adpurpose of \u00adavoiding any \u00adfederal tax penalties. You are encouraged to seek guidance from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the \u00adpurchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. \u00a9 2025 Broadridge Financial Solutions, Inc.<\/p>\n","protected":false},"featured_media":920,"template":"","meta":{"_acf_changed":false},"article-category":[20],"class_list":["post-919","articles","type-articles","status-publish","has-post-thumbnail","hentry","article-category-risk-management"],"acf":[],"yoast_head":"\n