Most Common Ways People Pay for Long-Term Care Expenses

By Steve Elliott | January 29, 2024 | Comments Off on Most Common Ways People Pay for Long-Term Care Expenses

Have you ever sat down and tried to figure out how you may cover long-term care expenses in the future, should you incur them? If not, you’re not alone. Most Americans don’t. They simply assume that their health insurance is going to cover it or they think Medicaid will pick up those expenses. You could have a long-term care insurance policy and be paying long-term care insurance premiums to cover the expenses.

Long-Term Care Insurance Premiums San Diego CA - Most Common Ways People Pay for Long-Term Care Expenses

Long-Term Care Insurance Premiums San Diego CA – Most Common Ways People Pay for Long-Term Care Expenses

The harsh reality is that very few if any, primary health insurance policies cover long-term care expenses. They cover short-term care for a few weeks, then they stop paying. As far as Medicaid is concerned, in most states it only covers one type of elder care, which is nursing home care, but it only starts covering after the individual has exhausted all their available savings and assets. In some states, that can include the equity in your home.

That means you might very well be on the hook for long-term care expenses if you, your spouse, or other legal dependent requires these services and supports at some point in the future.

Let’s look at four of the most common ways people pay for long-term care.

1. Out-of-pocket.

This is the most common way people do it. What does that mean? You would be tapping into your savings, most likely. After you’ve exhausted that, if the long-term care needs continue, you may have to cash out some investments.

Depending on how long that care and support is required, you may find yourself having to take out a reverse mortgage or think even more creatively for ways to pay for these expenses because you didn’t realize Medicaid won’t cover them, even though you or your spouse are well into your 70s at that point.

2. Medicaid.

Even though we just talked about Medicaid, this type of coverage is only available to low-income families that qualify for it. Just because you reach the magic number of 67 (or 69 or whatever it may be at the time you finally reach retirement age) doesn’t mean you automatically qualify for Medicaid.

Medicare and Medicaid are two different things. Let’s say, for example, that you are low-income and would qualify for it. Income and assets are always used in determining eligibility. If you do qualify for Medicaid, they may take control of your assets when you pass away to make sure they are repaid for what they cover.

3. Family members or friends.

Too often, men and women in their golden years of life assume that their adult children and other family members and friends will step up to provide care for them if needed. This may seem reasonable, but most people have their own lives, and careers, are raising children of their own, and have other responsibilities and won’t be the best caregivers.

Plus, they may not be able to help cover long-term care expenses once you realize how expensive it can be.

4. Long-term care insurance.

This is the best way to cover long-term care expenses during your retirement years of life. An average policy may cover up to three years of long-term care expenses. But, it’s best to start a policy as soon as you can so you are not denied coverage because of your age, family history of health issues, personal health issues, or other factors.

When you want to protect yourself, your spouse, your family, and other dependents for the future, look into long-term care insurance today.

If you or a loved one are considering Long-Term Care Insurance Premiums in San Diego CA, please get in touch with Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today at (858) 350-3161.

Steve Elliott
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