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Long Term care insurance is an essential estate plan tool

No one expects the unexpected.

What happens when a car accident or unforeseen illness sidelines us for years? What can we do when we face a permanent health care issue that involves ‘round-the-clock care? What options are there for paying for it?

Who pays when you are hurt?

Even if you have a personal injury claim against a driver who hurt you, you are likely to find it won’t cover all the care that you need. A long-term illness generally isn’t the result of someone’s negligence, so coverage there is often non-existent.

Government insurance programs requires an individual, with limited exception, to exhaust all their savings before covering any costs. There is also the issue of a lookback period.

Where does that leave you?

Any assets you transfer 5 years before needing Medicaid services are subject to a lookback period. That means that if you gifted anything to family members or friends, the government can claw-back those assets in order to cover the costs of your care.

But, careful planning gives you another option. Long-term care insurance provides benefits for that five-year period. This creates a timeframe for you to work with an estate planning attorney and transfer assets without worry that Medicaid will attempt to seize them.

Keep your assets in the family

We all work hard for the assets we have, and the investments we make, and handing them over to the government feels less than savory. Knowing who to call and when is half the battle for planning for tomorrow.