Often when people start thinking about their future, retirement, and potentially requiring care, they think that Medicare will cover their expenses. However, Medicare typically does not cover long-term care expenses. Medicare is a federal health insurance program primarily designed to cover medical services and hospitalization for people aged 65 and older, as well as certain disabled individuals. It has several parts, including Part A (hospital insurance) and Part B (medical insurance), but it does not provide comprehensive coverage for long-term care services.

"Consulting with one of our long-term care specialists can help you navigate the options available to you and create a plan to address long-term care costs."

Long-term care services, such as those provided in nursing homes, assisted living facilities, and for in-home care, are generally not covered by Medicare. Medicare may provide some limited coverage for short-term skilled nursing care or rehabilitation services if they are medically necessary, but it does not pay for ongoing custodial care, which includes assistance with the activities of daily living: bathing, continence, dressing, eating, toileting, and transferring. It also won’t pay for expenses related to a dementia diagnosis.

To cover long-term care expenses, individuals often need to explore other options, such as:

  1. Long-term care insurance: Some individuals purchase long-term care insurance policies that can help cover the cost of long-term care services, depending on the terms and conditions of the policy. Others choose a Short-term care policy, or even a hybrid solution that combines life insurance with long-term care or an annuity with long-term care.
  2. Medicaid: Medicaid is a joint federal and state program that provides assistance for low-income individuals and families with limited assets. It often covers long-term care services, including nursing home care. Eligibility and benefits vary from state to state.
  3. Personal savings and assets: Many people end up paying for long-term care expenses out of their personal savings, investments, and assets. It’s amazing how fast a lifetime’s worth of savings can be spent on long-term care.
  4. Veterans' benefits: Veterans and their spouses may be eligible for certain long-term care benefits through the Department of Veterans Affairs (VA).

It's essential to plan for long-term care needs in advance, as it can be a significant financial burden. Consulting with one of our long-term care specialists can help you navigate the options available to you and create a plan to address long-term care costs. They will consider your age, health, family history, assets, and retirement goals. They can answer all of your questions and guide you in the direction you and your loved ones are the most comfortable with.

Get started today by watching our educational webinar, filling out a questionnaire to see if you are eligible based on your health, or request a quote and connect with a LTC Insurance specialists.

As with all things related to your retirement, don’t wait. Long-term care insurance premiums are based on your age and your health, as well as other factors. Your LTC Insurance specialist can help you find the sweet spot to get the coverage you need at the price point you prefer.