Don't Rely Solely on Government Programs

With an aging population and uncertainty about the future of Social Security, insurance to cover the high cost of nursing home or at-home health care is the focus of increased concern. Medicare pays very little of the cost of long-term care in the United States. Medicaid will pay for the care, but only for patients who meet strict income eligibility requirements. With the recent decrease in funding for these programs by Congress, financial planning for long-term care is more crucial than ever.

So-called Medigap insurance can help pay medical expenses of the elderly not covered by the Medicare system, including long-term hospital care. But Medigap and other long-term-care policies are expensive and complex. A married couple, both age 68, could pay $6,500 or more yearly for a policy with lifetime benefits of $100 per day per person for nursing home care and $50 a day per person for home health care. Senior organizations, such as the AARP (formerly known as the American Association of Retired Persons), can provide information on long-term care insurance.

Insurance policies contain exclusions, limitations, reductions of benefits, and terms for keeping them in force.
Because your financial professional understands your needs as well as the role of the various kinds of insurance within an individual financial picture, he or she can help you with the policies that are most appropriate for you. Your financial professional can provide you with costs and complete details.

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