Long-Term Care Insurance

This type of private insurance policy can help pay for many types of long-term care, including both skilled nursing and non-skilled nursing care.

Assisted Living: How to Plan Financially

Meeting the costs of assisted living requires financial planning and evaluation. Elder care costs continue to rise and health insurance companies rarely cover more the total bill, unless your loved one procured a long term care insurance policy.

This type of private insurance policy can help pay for many types of long-term care, including both skilled nursing and non-skilled nursing care.
Long-term care insurance coverage can vary widely. Some policies may cover only nursing home care. Others may include coverage for a whole range of services like care in an adult day care center, assisted living, Alzheimer's assisted living, medical equipment, and formal and informal home care.

By Michelle Andrews

When Betty Hoff moved into an assisted-living facility in Fowler, Calif., two years ago, the 86-year-old thought she didn't have anything to worry about financially. She had a long-term-care insurance policy that would pay up to $3,000 a month for three years of nursing home, assisted living, or home care. Hoff has severe arthritis and can get around only with a walker or cane, which means she could no longer cook, clean, or do the laundry. But her insurer denied the claim. Hoff wasn't cognitively impaired, and the company said she didn't need help with enough "activities of daily living," or ADLs, to qualify for benefits.

As retirement approaches, it is important for every household to assess its financial identity (assess its finances). Waiting too long might mean missing one or more opportunities to preserve maximum financial independence in the future. To help get you started, can you say 'Yes' to the following statements?

Ben has been married for 47 years. He always managed the family's money. But since his stroke, Ben can't walk or talk. His wife, Shirley, feels overwhelmed. Of course, she's worried about Ben's health. But on top of that, she has no idea what bills should be paid or when they are due.
Eighty-year-old Louise lives alone. One night, she fell in the kitchen and broke her hip. She spent a week in the hospital and 2 months in a rehabilitation nursing home. Even though her son lives across the country, he was able to pay her bills and handle her Medicare questions right away. That's because several years ago, Louise and her son talked about what to do in case of a medical emergency.