Long-Term Care Insurance and Medicaid Planning

Long-Term Care Insurance and Medicaid Planning

Despite the fact that in big part people who buy long-term care insurance and those who chart to meet the criteria for Medicaid coverage of long-term care costs fall into detach groups, there are as a minimum two situations where they be related.

The first group is seniors who cannot pay for to buy lifetime long-term care insurance coverage. These persons may perhaps desire to purchase long-term care insurance coverage for five years. They might then transfer assets to family members or to a trust, keeping sufficient funds so that with the long-term care insurance advantage they can disburse for their care for the succeeding five years. After five years have passed, the Medicaid fine for transferring assets will have expired, permitting them to be entitled for Medicaid coverage if their other assets have been spent down to the appropriate limit.

The second group is seniors who are healthy and wish to transfer assets now, but who don’t have an adequate amount of funds to envelop five years of care if they had a stroke or other unpleasant medical event in next to no time following the transfer. These seniors could purchase long-term care insurance to cover the five-year period after the transfer. They might not have adequate funds or income to shell out the premiums for an indefinite period, but are capable to do so for five years, at the end of which they can make a decision whether to carry on the policy, maybe with the aid of children.

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