Longterm scare
Unless you have lots of money, your alternative to paying for long-term care is Medicaid. But you must spend down most of your assets to be eligible and being on Medicaid limits your choice of care.
HERE ARE SOME THINGS TO THINK ABOUT:
The earlier you buy long-term care insurance, the less it costs.As you age and develop serious health is sues, you may not be able to get coverage. Insurers are getting more stringent. Consider hybrid products such as a life insurance policy with a long-term care rider. Sales of these type sof policies jumped 56% last year, according to LIMRA. “It allows partial access to death benefits when a long-term care situation has arisen,” said Kathy Chazen of National Financial Network. Purchasing inflation protection is important to keep up with the rising costs of care. But to make your policy more affordable, you might want to choose a rate of 3% as opposed to 5%. New York State offers a tax break, a 20% income tax credit on your annual premium. Consider buying a policy offered by the New York State Partnership for Long Term Care Insurance. The program allows New Yorkers to protect some or all of their as sets in the event that their long-term care needs go beyond the period covered by their private insurance policy. “If you use up the policy, you can go on Medicaid and keep your assets,” said elder care lawyer Ronald Fatoullah. “That’s why I bought it. It’s comforting to know.”