Long-Term Care Insurance

With the passage of the Health Insurance Portability and Accountability Act of 1996, our federal government has made it clear that each of us is now responsible for the costs of long-term care. This law sends the message that our government has neither the intent nor the resources to fund a national long-term care program. Individuals looking to protect themselves must look to private markets.

Medicare doesn't pay for custodial care, which is what seniors most frequently need. And Medicaid will not pay a cent until virtually all your assets have been wiped out. The biggest threat to your financial security is the cost of long-term care. An estimated 43% of Americans over 65 will spend some time within their lifetime in a long-term care community. The costs will vary from $40,000 to $100,000 per year.

However, it is very important when looking at this area to make sure your plan includes home health, assisted living, and nursing home care. Most plans focus only on nursing home care.