Insurance & Employee Benefits
The thought of spending their final days in a nursing home scares many seniors. The thought of paying for it, though, may be even more frightening. The cost of a year in a nursing home now averages more than $70,000, or $192 a day, according to one comprehensive study. And it is likely to continue going up at a rapid rate. One factor driving prices up is that people are living longer. In the days when people typically lived for only a few years after retiring, only a small percentage of the population needed nursing home care. Today, it is not unusual for seniors to live into their 90's. The older an individual is, of course, the more likely it is that he or she will need nursing home care. The odds that someone who is 65 will need long-
It is difficult to know in advance who among us is going to need long term care. Individuals who require long-
What is the likelihood that a healthy middle aged individual will need long-
Contrary to popular belief, the likelihood is pretty high. A current study shows that 60% of people age 65 will need long-
What is the need for long-
The fact is that Medicare covers a very limited nursing home stay and under very restrictive circumstances. Currently, Medicare requires that the nursing home care follow a brief hospital stay only and Medicare provides no coverage in excess of 100 days. Considering the average length of stay in a nursing facility exceeds 2 years, an individual would need to bear more than 80% of the cost. Medigap and Medicare supplement policies are focused on covering the deductibles and co-
Long Term Care Insurance Essentials
If I divest my assets, won’t Medicaid pay the bill?
Medicaid will indeed pay the long-
Are there any cost savings in a purchasing policy together with a spouse or a group policy though a business?
A husband and wife purchasing policies together receive a discount in premium.
Five or more people purchasing a group policy through a business currently receive a 10% discount. It should be noted that a person and their spouse are two policies. If a business has two partners, each partner can purchase two policies and together with any employee can receive the group discount.
A group of 20 or more can receive a discounted group long-
What is the tax implication on premium payments and benefits received from a long-
All benefits received are tax-
Why should I begin paying premiums at age 50? I could simply wait to take out a policy at a later age, closer to the possibility of making use of the benefits.
There are a few answers to this question:
40% of people receiving long-
The premium for long-
The projected annual cost of nursing care is increasing at an annual rate of 7% -
Example: 5 year benefit;
* Rates are for illustrative purposes only.
The cost of a lifetime benefit is too high and unaffordable. Can one obtain additional coverage for a very lengthy illness?
The cost to purchase a lifetime benefit is indeed prohibitive to many people. However, a person could still obtain additional coverage through other ways. Here are two of the multiple options that can be explored:
ShareCare Plans – A husband and wife can purchase a share care benefit that allows on spouse to “borrow” unused days from the other to cover a lengthy period of care. The negative ramification is that the health spouse now has a reduced benefit period.
NYS Partnership Plan – Many leading companies sell plans through the New York State Partnership. These plans provide a three year benefit period. When the benefit period runs out, the insured can receive 100% of the coverage from Medicaid without divesture of assets. The policy is used to purchase an affordable policy with unlimited benefits does not require divesture of assets.
Invest now to secure your future and save on premiums in the long run. For more information and to find out which policy is best for you, please feel free to contact Group Coverage, Inc.