Do I need long term care insurance?

When you reach the age of 65, you have a 40% chance of needing some form of long term care. Medicare generally does not cover long term care needs such as routine eating and bathing.

Access to Medicaid-eligible nursing homes generally requires that you be impoverished. In addition, new rules make it tougher for a person to give away assets in order to qualify for Medicaid coverage. However, in Louisiana, qualified Long Term Care policies will protect your assets to a value equal to the total benefit value of the Long Term Care policy if you need to enter a Medicaid-eligible nursing home.

Long Term Care Insurance

Typically long term care insurance is paid for monthly and benefits are paid tax free at a daily benefit amount of from $50 to $500 per day. Coverage can vary from 3 years to lifetime. A number of riders can be added to the policy to customize it to fit your individual needs.

Single Premium Long Term Care Insurance

These policies are generally most appropriate for individuals who have between $500,000 and several million dollars in net assets. The primary benefits are:

  • Long term coverage of 3-5 times the premium.
  • If benefits are never used, then policy pays a death benefit equal to 1.65 times the premium
  • If the purchaser of the policy ever changes their mind, then they can get a 100% refund of the premium.

For more information on long term care, click on “consumer guide” below. After page appears click on brochure: Consumer Guide for Long Term Care

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