A. Not likely, but if they do, it may cost you all that you own. There are two government programs that might help you in a health crisis, Medicare and Medicaid.

Medicare pays for medical providers to help you recover from health conditions. Once it is determined that recovery is no longer probable, Medicare stops paying. A National Association of Insurance Commissioners report stated, “Neither Medicare, Medicare supplement insurance, nor the health insurance provided by an employer will pay for most long term care expenses.”

Medicaid is welfare. To qualify the person needs to prove they have next to no assets.What’s measured is assets. Before Medicaid is able to help, most people have to spend down most of their assets. Also, federal law requires state governments to recover from your estate the costs of the Medicaid-paid benefits you receive. Nearly 43% of nursing home stays are paid by Medicaid for people who, have lost their freedom to make any choices about where they live and who takes care of them.

A. According to a study by the Health Insurance Association of America, the most important reasons to purchase long term care insurance include the following

A. Not only will it help to protect their savings by providing benefits should they have a long term care expense, but it will also preserve their estate for you and give them peace of mind knowing that these benefits will be available to assist you in helping them have their choice of care.
A catastrophic loss impacts everyone in the family.

Some costs, like those for nursing homes, are clear, but many are not. These “hidden” costs of long term care often include anxiety and guilt, lost family earnings, postponed vacations, and lack of privacy in a case where parents have to move in with their children. LTC insurance provides the financial resources to protect against these costs.

A. Maybe. The department of Veterans Affairs provides health care based upon a set of eligibility guidelines consisting of three categories (A, B and C).

Category A ensures that veterans with service-connected disabilities and eligible veterans with lower incomes are assured hospital care. (Custodial care is not provided).

Categories B and C ensure that veterans who were disabled in service with higher incomes might receive care on a “space available” basis only. The co-payment is based on level of income. Call the Veteran’s Benefits Department at 800-424-8200 for further information.

A. Typically people should consider the purchase of LTC insurance from the mid 40's.

The cost of long term care insurance depends upon your health and your age at the time of your application. So The younger and healthier you are the lower the cost will be.

The annual cost of long term care coverage at ages 45-50 is much less then the cost of the same policy bought at an older age. The cost at age 65 is 35% of the cost of the same policy bought at age 75. Provided that you have chosen an inflation rider, over the course of your lifetime it is a much better value to purchase at a younger age. Your benefits will be compounding to provide greater benefits for you at a less total cost.

A. There are many complexities to this question. Both the companies issuing the insurance and the policies themselves each have advantages and disadvantages that first must be recognized and then be weighed. Select an experienced LTC specialists who understands how the policies work when you go on claim.

Typically, a specialist will consider the experience and size of the company, the policy’s pricing structure (e.g., some companies have different age niches), the particular benefit preferences you have (e.g., return of premium, or survivorship for couples), the overall plan designs available (home care options), and the underwriting requirements of the company (health discounts).

A. It depends on the type of retirement community you choose. There are two kinds of retirement communities, a life care community or a pay-per-service and rental community. It is very important to understand all the details before signing a contract.