Why
is long term health
insurance so need today? Well, let me give you an example
from a poor
family
that thought they were going to be making some serious money from the
sale of
their mom and dad’s place who passed a few months ago.
Four years ago, prior to
retiring to a retirement community, this
couple filled
out paperwork giving the kids their home in the event of their deaths.
But,
what the kids didn’t know was someone else had a right to the money
from that
home before they did.
Who was it?
It was Medicare! You see,
when they went in to the retirement home,
their
medical didn’t completely cover it and Medicare paid for the rest,
but
only if
they couldn’t afford it. Well, Medicare says, basically, from what I
understood,
“If you own a home, the proceeds of the home will pay back Medicare
upon the
sale of the home.” (Even if that is after they should die.)
So, what has happened to
this family is instead of getting $45,000
each, they
are only going to get about $10,000 after Medicare gets their cut.
What
would
have stopped this from happening? The only thing that would have
stopped this
from happening is if their parents had gotten long term health
insurance when
they were younger and prepared for something like a retirement home.
This happened to our family a few years ago as well, with my Grandparents and I was unaware to the extent until I brought it up with my parents and how they planned to deal with retirement and the possibility of something like that happening to them. My parents were smart and when they saw what happened to my grandparents, they immediately went out and purchased long term health insurance that will cover them for the rest of their life and as my dad put it, “Not put a burden on your brother and sisters”.
So, if you are reaching about 50 years of age, it could be a good time to start looking for long term health insurance because if you do the math and buy it then, it will actually save you money. If you wait until you’re 65, then the costs almost triple and within 3 years you have already paid what you would have paid if you started paying when you were 50.
I know I’m about 10 years away and I’m certainly going to do this for my children, because you just never know. Even if I’m in a car accident or something, this will cover me for the long term for that as well… long after medical insurance has stopped.
Todd Clark - Broker / Sales Coach
Palazzo Realty Group
Phone: (503)524-9494
Fax: (503)622-8739
©2009 Todd Clark - Why long term heath insurance is so needed today
I'm not there yet, but I need to start thinking about it!
Thanks for sharing this critical information with us tonight. I have bookmarked it and I will share this with my wife.
Todd, this is an incredibly timely post. My father in law is slipping into dementia and is being forced into a assisted living facility. Mom and Dad planned for everything but long term care. They have a living trust, one can spend more than half the assets, no debt, financially well off, house paid for. Medicare Gap Coverage, everything but a plan for if one of them has to go into a facility. They took care of themselves physically but still this has happened.
They now have to spend all their assets, potentially leaving mom with nothing left to care for her. Its a mess and there is nothing we can do about it.
Good advice. I keep telling a certain member of my family to do the same, even if its to cover funeral expenses.
This kind of situation is really central to the current health care reform debate -- even though this issue is not really going to be covered under the current proposals.
It seems that much of the country expects the government to pick up the tab for every thing medical or care based. But the government in the end is us.
It seems harsh to insist that everyone pay their own way...all the way. But there simply are not enough rich people available to pay not only their own way but that of others, too.
Hi Todd, Good post. Thanks for sharing.
Best - Sash
In this conflicting world, it's hard to trust anyone one but yourself with your future Todd...
Begin each day as if it were on purpose,
Paul
If you want to hear God Laugh tell him your plans or make ones for long term. Hey Obama is going to take care of this for us! Seriously great thoughts!
When you sign up for long-term coverage, there is usually some sort of "elevator" clause where the amount of your coverage increases to keep pace with the rising cost of health care. If you do not choose that option, your coverage could end up being woefully inadequate when the time comes. Conversely, what you start out paying for long-term care could end up being a whole lot more as time passes. Either way, it's ugly!
I know I would rather count on myself and leave something for my family than have the government make a bunch of promises, we have seen where that leads us.
Todd --- this is a little scary for the older folks --- good post for your public as well as for AR. Thanks.
Mama Liz
I agree with you Todd. We never know life is playful. I'll get there soon..I'm thinking about it.
Jonelle
Wow! I had no idea this was happening. Excellent post.