1)Your Biggest Financial Threat: The most significant threat to your financial nest egg is long-term care. 70% of people over age 65 will need some kind of long-term care during their life. The national average for home health care services is $16,743 per month. The good news is there are ways to manage this without buying a traditional long-term care insurance policy - the types where “you use it or lose it.”
2)What Your Long-Term Care Insurance Policy should and should not do! Long-term care insurance should be termed “lifestyle” insurance — it is NOT nursing home insurance! If your vision of your later years includes sitting at home in your own recliner, with your own remote control, watching your own TV, you should be planning for that future with long-term care insurance.
3)Reverse Mortgages- Good or Bad? Reverse mortgages (Home Equity Conversion Mortgages) have become one of the most popular and accepted ways of paying for many different expenses, including the cost of long-term care. Reverse mortgages are designed to keep seniors at home longer. A reverse mortgage can pay for in-home care, home repair, home modification, and any other need a senior may have.
4)When To Use Medicaid to Pay For Long-Term Care. Medicaid should be used as a last resort to pay for long-term care. However, in some cases, it may be the only option to protect family assets. Medicaid will pay for long-term care, but certain criteria must be met. It is important to seek the advice of a qualified financial professional and an elder law attorney prior to applying for Medicaid.