Call us for a free intial consultation today and potentially save $100,000 or more in nursing home costs. 1 (877) 21-Medicaid or 1 (877) 216-3342
A Medicaid professional consultant helping an elderly woman to protect her assets and money from the nursing home spend down.

Long Term Care Insurance for Nursing Home Costs

Discuss living rider benefit and fixed income annuities for long term care

Long-Term Care Insurance for Nursing Home Costs When looking to purchase long-term care insurance to cover nursing home costs, there are some available resources that can help. The National Association of Insurance Commissioners has a publication that can help those shopping for insurance. This is a great starting point when planning for Medicaid. When a person waits until they are older, they will usually end up paying more for this insurance, so the sooner people get information and purchase a policy, the better off they will be in the long run.
There is a growing need and demand for long-term care insurance. Insurance companies are aware of this and they are trying to offer a variety of policy choices. Many people do not have a lot of money to invest in this insurance and many individuals will see this insurance as a waste of money, especially if the benefits are never used.

Living Benefit Rider to Cover Nursing Home Expenses Not Covered by Long Term Care Insurance

If a person does have the insurance, there are many companies that will help as much as they can financially. Some will pay the insured 2% of the death benefit each month if that person is unable to perform 2 or more of the 6 ADLs. This is referred to as a living benefit rider. The money can help to cover the costs of long-term care expenses that are not covered with the insurance policy. Policies will have different terms, so shopping around and finding the right policy is essential.

Fixed Indexed Annuities for Long Term Care

Another option is guaranteed income from fixed indexed annuities. Some companies will offer a free long-term care benefit that is in the form of an enhanced income stream. This option is available to individuals who cannot perform 2 of 6 ADLs. Some fixed indexed annuities will actually double the amount of monthly income. For example, if the individual gets $1500 a month, they may be able to receive $3000. This extra money can be very useful when paying for long-term care. If the individual has maxed out their daily allowance from the policy, they will be responsible for the remainder of the bill for services. This is where this option can be beneficial. Many people have no other way of getting the money to pay for care, so this would be a great option.
Planning for long-term care is time consuming and difficult. There are many types of policies that are available. Individuals should try to purchase the most insurance they can afford. This will reduce the chances of having to pay for nursing home costs out of pocket after the insurance coverage ceases.
Read more information on Medicaid: