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Freeman's Blog

February 22, 2012

Everyone hopes and prays that they will never find themselves in a position where they need long-term care. The mere thought of being unable to walk, talk, feed yourself, or even bathe yourself can be terrifying. But as understandable as your reluctance is, it’s crucial that you take steps for practical planning in the event that a major life event leaves you unable to care for yourself. Don’t leave this tremendous responsibility and decision-making to your family. For your own peace of mind, you need to sit down and make a plan.

The need for long-term care can, in many cases, create personal financial ruin. The funds that you intend to give as inheritance to your loved ones can be quickly evaporated with the employ of nursing facilities during long-term care. And keep in mind that the possibility of needing long-term care increases as you get older.

So, there are 2 options to consider:

1. Self-insurance
Self insurance means that you set aside funds to cover the cost of long-term care yourself. This option, however, requires that you have sufficient resources to pay for the rising costs of long-term care. Even if you have sufficient resources now, you may not be able to afford the rising costs without drastically altering your life-style or financial portfolio.

2. A better option for many is Medicaid.
Medicaid is a joint Federal/State insurance that pays the medical bills of the needy. If you qualify, it could help pay for long-term care costs. Unfortunately, this might require that you spend down all of your assets or transfer your assets to qualify.

Long-term care insurance may enable you to transfer the majority of long-term care costs to an insurance policy in exchange for the regular insurance payments. But, this kind of policy has a number of exclusions and limitations so you have to be careful when choosing one.
Your Safe Money Kit

Before your possible need for long-term care arises, be sure to have your financial portfolio in good standing. Let me help you get the most of your retirement dollars and help you keep your money SAFE. Download my SAFE MONEY KIT to help you determine your greatest financial needs. Then, contact my office at (866)471-7233 for a free consultation.