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Past Articles: Surviving the Zero Interest Rate Environment Important Message about IRA Conversion Opportunities
About SC&H Financial Advisors, Inc. Personal Financial Planning is not a one-time event—it is a critical, ongoing process that, if managed well, leads to financial freedom. At SC&H, we develop complete and flexible plans that are designed to meet your ongoing needs. They are complete, because you need a fully integrated and comprehensive financial strategy that incorporates all of the most important wealth care issues. They are flexible, because milestones in your life such as a marriage, a career change, the birth of a child, a divorce, or a death in the family will require adjustments to your overall financial plan. To learn more about these services, visit www.scandh.com/fa. |
In This Issue: Should You Buy Long-Term Care Insurance?
We understand that this can be an uncomfortable topic to even consider. However with proper planning and forethought, the transition into long-term care is much less stressful. The professionals of SC&H Financial Advisors are prepared to review your financial situation and help you evaluate if long-term care insurance is right for you. Feel free to contact any of us for a discussion. Best regards, Greg Horning Should You Buy Long-Term Care Insurance? The longer you live, the greater the chances you'll need some form of long-term care. If you're concerned about protecting your assets and maintaining your financial independence in your later years, long-term care insurance (LTCI) may be for you. Who needs it? Approximately 40 percent of Americans age 65 or older will need long-term care at some point during their lives, according to The National Clearinghouse for Long-Term Care Information, 2008. And with life expectancies increasing at a steady rate, this figure can be expected to grow in the years to come. But won't the government look out for me? Medicare pays nothing for nursing home care unless first you've been in the hospital for three consecutive days. After that, it will pay only if you enter a certified nursing home within 30 days of your discharge from the hospital. For the first 20 days, Medicare pays 100 percent of your nursing home care costs. After that, you'll pay $137.50 per day (in 2010) for your care through day 100, and Medicare will cover the balance. Beyond day 100 in a nursing home, you're on your own--Medicare doesn't pay anything. If you're at home, Medicare provides minimal short-term coverage for intermediate care (e.g., intravenous feeding or the treatment of dressings), but only if you're confined to your home and the treatments are ordered by a doctor. Medicare provides nothing for custodial care, such as help with feeding, bathing, or preparing meals. Medicaid covers long-term nursing home costs (including both intermediate and custodial care costs) but only for individuals who have low income and few assets (eligibility guidelines vary from state to state). You will have to use up most of your savings before you qualify for Medicaid, and aside from a small personal needs allowance (typically $30 to $60 dollars a month), you will have to use all of your retirement income, including Social Security and pension payments, to pay for your care before Medicaid pays anything. Finally, once you qualify for Medicaid, you'll have little or no choice regarding where you receive care. Only facilities with Medicaid-approved beds can accept you, and your chances of staying in your own home are slimmer, because currently most states' Medicaid programs only cover limited home health care services. Looking out for yourself If you want to retain your independence, protect your assets, and maintain your standard of living while at the same time guaranteeing your access to a range of long-term care options, you may want to purchase LTCI. This insurance might be right for you if you meet the following criteria:
For assistance with obtaining Long-term care insurance, or for your other financial planning needs, contact your SC&H Financial representative.
Securities offered through Triad Advisors, Inc. Member FINRA/SIPC. Advisory Services offered through SC&H Financial Advisors, Inc. SC&H Financial Advisors, Inc. and Triad Advisors Inc. are unaffiliated entities. Prepared by Forefield Inc. |
