What options do you have?
OPTION 1: Pay the cost yourself. The current costs for nursing home care range nationally from about $30,000 to more than $100,000 per year, depending on where you live. (Wall Street Journal, 11/17/95)
OPTION 2: Let Medicaid pay for it. Medicaid is the welfare provision supplied by the government, after the patient has "spent down" all assets to the point of poverty. Once federal poverty guidelines have been met, Medicaid will assume the cost of long term care. However by then, the patient has forfeited their financial independence.
OPTION 3: Rely on private insurance coverage. By purchasing a long term care insurance plan, the financial burden and risk is transferred to an insurance company.
What are the Advantages of Purchasing a Long Term Care Insurance Plan?
You have control over when and where you receive care and its quality.
You receive peace of mind knowing you won't burden your family.
You are protecting your assets for your spouse and heirs.
You maintain financial independence and personal dignity.
Premiums increase with age, so the sooner you plan, the lower your premium.
Premiums are affected by health. Plan now before your health changes.
Tax advantages. Qualified long term care insurance premiums are tax deductible, subject to provisions in the Health Insurance Portability and Accountability Act of 1996. Long term care benefits paid by a qualified plan will not be taxable as income.