"Plan for the future because that's where you are going to spend the rest of your life".
His words are very insightful, important, and encourage all of us to take time to think about and do it today — the lifestyle we would like if a change in health were to happen
Why don't people plan? There is no one answer to — Why? It is a part of human nature Some think:
● I'm "invulnerable" so — "I won't need assistance".
● Oh, I'll take action later — I'm busy with work & life.
However, "when later comes" which it will — everyone faces two problems:
˃ First — The cost to buy goes up for each year they wait. e.g.
e.g, if you are 60, the cost is 60% higher vs when 55.
˃ Second — The Big problem - no one knows if their health will change — if it does the chance is very high they may not qualify!
● Buying "insurance to protect your income & savings":
˃ Is not the same as putting money in an investment and — hoping to get more back.
˃ Gives you a guarantee the amount of benefit you selected will be there so you can hire assistance — no hope involved!
Let's look at — "not get money back": Person at 55 buys a four year benefit then needs assistance say at 80. What they paid over 25 years could come back in benefits in close to a year!
Note: In addition, the benefit pool they bought continues to be available to pay for assistance for over three years.
People (66%) incorrectly believe MediCare pays for on going assistance. But it does not!
These words, from the Medicare.gov web site, tell us: [I added bold]
"Medicare Part A (Hospital Insurance) helps cover inpatient care in hospitals, including critical access hospitals, and skilled nursing facilities (not custodial or long-term care). It also helps cover hospice care and some home health care."
This program will pay for long term services & supports if and it's a Big if - a person's income ! is low enough to qualify.
However, having the state of CT pay is not guaranteed Thus, will current state/federal funding, continue in the future? Then too, will CT's budget controls change what is covered?
● Some people think CT will alway pay and others are following advise from some source to pay for a plan so they can apply if needed.
● However, many don't want to have to have the kind of lifestyle, which comes when receiving MedicAID. They believe it means their dignity would be lost.
Note: Another thing about being on MedicAid - Connecticut's reimbursement rates for nursing facilities are very low so a facility near home may not be available.
Surprise! The IRS says owning long term care insurance can have a positive affect on taxes.
Couple things. IRS regulations state::
● When you buy a qualified Long Term Care insurance plan any money received in benefits is tax free!
● Some individuals can benefit from the Long Term Care insurance age based partial deduction. Payments are deducted when completing their IRS 1040.
● You do have to pay taxes if any dollars are withdrawn from investments to pay for assistance!
● An extensive review of each person's medical history by answering in detail written and phone questions.
This is used to determine if a persons medical situation is OK to take the time & details needed for the extensive review.
The preliminary review asks questions about a person's medical situation & their use of medications.
A formal application with the "parts" you are interested in.
When it is submitted the lengthy process begins with some written questions, a phone interview, and perhaps other steps.
When a plan is approved, perhaps with a higher cost, and it's acceptable you own a Long Term Care insurance plan.
Then if a change of health happens requiring on going assistance you:
● Won't become a burden on the ones you love.
● Can hire professionals and continue to be more independent!
● Have protected your income & Savings!
I'll get back to you if not available.
You can also send a note to - Learn@JohnCParker.ag