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Should You Buy Long-Term Care Insurance?

It can be a difficult topic to discuss, but it’s something that many of us will have to grapple with at some point, if not for ourselves, for a loved one. The longer you live, the greater your chances of needing some form of long-term care. And with life expectancies steadily increasing, the likelihood of needing long-term care can be expected to grow in years to come. If you want to protect your assets, and maintain your financial independence in your later years, long-term care (LTC) insurance might be for you.

Who Needs Long-Term Care Insurance?
Of adults age 65 and older today, 70% will need long-term care services. The good news is that there are more services and solutions than ever before. Today, LTC includes services designed to help people live independently for as long as possible in their own homes. The most common type of LTC is simply put, personal care. That includes getting help with everyday tasks like bathing, dressing, taking medications, or getting services related to transportation and meals. It is important to note that LTC doesn’t always mean chronic, lifelong care. For many people, LTC may be more focused on rehabilitation and recovery. Services vary widely, and that’s a good thing.

Won't the Government Look Out for Me?
If you're at home, Medicare provides minimal short-term coverage for intermediate care, but only if you're confined to your home and the treatments are ordered by a doctor. Medicare provides nothing for those common, everyday tasks mentioned above.

Medicaid does cover long-term nursing home costs, but only for individuals who have low income and few assets. (Eligibility guidelines vary from state to state.) And 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.

It’s Wise to Look Out for Yourself
If you want to retain your independence, help protect your assets, and maintain your standard of living while guaranteeing access to a range of LTC options, you might want to purchase LTC insurance. The younger and healthier you are when you buy LTC insurance, the less your annual premium rate will be. This insurance might be right for you if you meet the following criteria:

  • You're between the ages of 40 and 84
  • You have significant assets you’d like to preserve as an inheritance or a bequest
  • You have an income from employment or investments, in addition to social security
  • You can afford LTC insurance premiums (now and in the future) without changing your lifestyle.

CUSO Financial Services, L.P.* at University Federal Credit Union now offers new LTCI solutions that can help you prepare for whatever life brings next. If you’d like to learn more, call us at (800) 252-8311 or (512) 467-8080 x21081 to discuss your options.

†"How Much Care Will You Need?", Feb 21, 2017.

* Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. UFCU has contracted with CFS to make non-deposit investment products and services available to credit union members.