When you think of long-term care insurance, do you just think of protection from nursing home costs? You may, but long-term care insurance covers much more than that.


When you think of long-term care insurance, do you just think of protection from nursing home costs? You may, but long-term care insurance covers much more than that.
“A critical piece to comprehensive estate planning for many folk involves protecting our savings and other assets against future risk, such as the need for long-term care services,” John Sommer, CSA, Everence financial advisor in North Newton, said in a news release. “The current total cost of long-term care in our area is running from $5,500 to $6,500 per month.”
People often think of long-term care insurance as being used for skilled nursing home care only. However, it also covers home health care, and assisted living or personal care. Long-term care insurance can protect savings from disappearing so quickly, or provide access to care for those who were not able to save much during their working years.
Even if you have Medicare and a Medicare supplement plan, that isn’t enough. Medicare only covers short-term care needed after a hospital stay. Long-term care insurance is an extra level of coverage that can help with ongoing costs of care for chronic conditions.
A unique opportunity for Kansas residents is the Kansas Partnership for Long-Term Care for those who want to stay in control of their assets and their care choices. Persons who purchase a qualified long-term care policy under this state of Kansas provision receive dollar for dollar protection. Each dollar your policy pays out in benefits entitles you to keep a dollar of your assets if you ever need to apply for Medicaid services.
If you are considering purchasing some long-term care protection, there are several ways to pay for it. Because the usage rate for this type of insurance is quite high, premiums have risen in the last five years, so some financial planning is necessary.
Here are some options for covering your premiums:
1. Pay out of current income.
2. Pay out of tax-qualified retirement savings (such as IRAs). Because money pulled from retirement accounts will be taxable, this should not be your first choice.
3. Pay out of non-tax qualified savings (bank account, investments).
4. Pay out of tax-deferred annuities.
For more information, contact Everence at (877) 467-7294.