Should I Include Long-Term Care Insurance In My New York Estate Plan?
Estate planning is a process that can take years to get 100 percent correct. People’s lives grow and change, with new opportunities and relationships supplanting or replacing the old. However, one thing that will remain constant for the majority of people is the necessity for proper medical care as they age. In order to ensure that care is paid for, it is important to plan your New York estate properly.
No Spend-Down Required
The U.S. life expectancy rate has been steadily rising (aside from a recent sharp drop around the COVID-19 pandemic), since the late 1960s. However, the cost and availability of medical care has not always kept up, creating high prices for those who need it later on in life. Given that the United States does not have single-payer healthcare, the strong majority of those who age out of the workforce may require help paying for medical care.
Medicaid will cover many long-term care expenses, but it only does so once a person has ‘spent down’ their assets. Medicaid is a means-tested program, meaning that it will only work for people with income and assets under certain limits. If a person cannot or will not spend down their assets, long-term care insurance can help to cover bills for a person in such a situation.
Potential Negatives
While many people do choose to spend down their assets in order to qualify for Medicaid assistance in long-term care, those who opt for long-term care insurance need to be aware of exactly what they are paying for. For example, insurers used to offer lifetime coverage, but in recent years, caps have been placed on payouts that usually last no longer than three to five years. For women, the amount may last an even shorter time.
Also, as one might imagine, one must still pass an insurer’s underwriting in order to qualify for insurance. Disabled and elderly people are less likely to receive coverage, though the strictures will differ from company to company. It is also not uncommon for someone to purchase partial coverage, choosing to rely on their own funds or other options to cover costs an insurer will not meet.
Call A Westchester County Estate Planning Attorney
If you are in a position to be contemplating long-term care insurance or other assistance for medical care, a Westchester County estate planning attorney from Meyer & Spencer, PC can help you determine your best options moving forward. Contact our Pleasantville office at (914) 741-2288 to schedule a consultation.
Source:
data.worldbank.org/indicator/SP.DYN.LE00.IN?locations=US
