Long-Term Care Tips 

• Consider long-term care insurance coverage only if you have significant assets and income that you want to preserve should you need care, and if you are confident you can afford current and future premiums.
   
• Retirement income is probably not sufficient for the level and quality of long-term care that most people might want.
   

·      If you decide to purchase long-term care insurance, it is ideal to buy a policy with maximum flexibility. That way, you can choose to receive care at home or in a facility, depending on your personal preference. Conversely, buying a policy with limited benefits will be more affordable in the short term.
 

• When couples buy long-term care insurance, there usually is an option to choose a “global budget.” That means that if your spouse uses up his/her half of the benefits, he/she can borrow from your half. Consider a global budget for any long-term care policy that you may buy.
   
• Some long-term care policies have cash build-up provisions. With this option, if a person passes away before using the benefits of the policy, a certain amount of the cash build-up reverts to the heirs. Premiums for such policies can be higher than for those policies without the provisions option.
   
• You are usually entitled to Medicaid when your assets and income are below a certain amount (this amount varies by state). Medicaid will typically cover facility-based long-term care, typically in a nursing home, but only some in-home services. In addition, not all facilities accept Medicaid and some have a limit on the number of Medicaid residents they will accept.
   
• With comprehensive long-term care insurance, you will often have more options to fund your long-term care needs than you would by just relying on Medicaid.
   
• Keep in mind that while a long-term care insurance company may not raise your rates based on your age or health, it can raise rates for an entire class of policies based upon their claims experience. State law generally regulates the premium rate increases on long-term care insurance.
   
• It is essential to start planning while you still have options. According to the Center for Medicare and Medicaid Services (CMS), Medicaid pays for about 50 percent of long-term care in the U.S. The rest is paid primarily by the individual or the individual’s family. Currently, long-term care insurance pays between 8 and 10 percent of long-term care services.
   

Long-term care insurance is only one option in funding future long-term care needs. You should explore all options that pertain to your specific financial position, needs and desires. Long-term care insurance should be purchased within a comprehensive financial plan with advice from a trusted financial planner.