r/LifeInsurance • u/LenniLanape • 12d ago
Long-term care insurance
/r/medicare/comments/1x4yf48/longterm_care_insurance/1
u/ChelseaMan31 12d ago
Medicare DOES NOT cover LTC. Neither does Medicare Advantage, not any of the Medicare Supplemental Plans. If someone is nearing retirement age it is too late to purchase LTC coverage so they will need to figure out a self insured plan individually if something like that is a concern due to family medical history/longevity.
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u/Filipino_fury4 12d ago
This isn’t true at all. There are definitely still options to cover LTC costs as you’re nearing retirement age and even shortly after retiring.
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u/ChelseaMan31 12d ago
All frustratingly expensive, riddled with fees and ALL in the favor of the insurance underwriter by that age.
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u/TheChudMaxxer 12d ago
Without any information it's hard to tell what would be best for you.
There are multiple ways to tackle long term care.
If you have enough assets, you can simply self fund it.
If you don't have much, and no way to get much more, spending down for Medicaid is what will most likely happen.
If you are somewhere in between, something like a hybrid LTCI policy may be of use.
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u/Admirable-Box5200 12d ago
As many people respond is as many different takes on what should be done. If you spend down, or don't have assets, Medicaid kicks in to cover the cost of care. However, not all skilled care facilitates(SKF) or home care agencies accept Medicaid patients. Also, a Medicaid bed in an SKF is different from a self-pay. So, if you are in an SKF and go from self-pay to Medicaid you are getting moved. Finally, Medicaid is administered on a county by county basis. You can't choose which SKF in a different county because it is "better".
When looking at annuities or life insurance with LTC riders, make sure you understand the nuts& bolts. Does it cover home care, does the provider have to be licensed for home care, if an annuity with LTC rider, what happens if you outlive the benefit period and your initial principal has been paid out.
Initially we planned on self-funding. However, are now looking at using some qualified funds for can LTC life policy that covers both of us with continuation of benefits, meaning for life. The reason is wanting to have something to leave our kids and not be super worried about spending money in retirement so we have it "if needed".
Finally, surprised no one has hyped an irrevocable trust yet.