What is the cost of long-term care?

Many people mistakenly believe that government programs like Medicare and Medicaid will automatically pay all of their long-term care needs. While these programs do pay for some long-term care services, you shouldn’t plan on them covering the majority of your costs.

Medicaid may pay for skilled nursing home services, as well as some home and community-based care for low-income Americans who have limited funds. To qualify, one has to meet federal and state guidelines for income and assets. Many people who are living in nursing homes entered the facility paying for care out-of-pocket, and only after they spend enough of their assets do they meet Medicaid eligibility requirements via asset “spend-down.”

Not all nursing homes accept Medicaid patients, and Medicaid can dictate which nursing home a patient may use. If you’re concerned with protecting your assets, or simply want more control over the type of care you will receive, you should not rely on Medicaid for their long-term care needs.

Medicare may cover up to 100 days of skilled nursing home care if certain conditions are met, but it’s not designed to be a long-term care financing tool. Medicare does not pay for any homemaker services, home health aides, or assisted-living costs.

Not necessarily. All applicants are underwritten and health status can affect insurability or premium rates for LTCi. However, the majority of applicants who apply for long-term care insurance coverage from New York Life are approved.

It varies. Premiums are determined by your age at time of purchase, the amount of coverage you purchase, the length of your waiting period, the inflation option and any additional riders you purchase.

• Premiums increase with age, so the younger you are when you buy a policy, the less you will pay in annual premiums and over your lifetime.

When considering long-term care insurance premiums, remember to weigh costs against the potential pool of benefit dollars available to you.

Yes! At New York Life, we’re here to help you face your future securely and confidently. As a mutual company with the highest ratings for financial strength currently awarded to a life insurer by all four major ratings agencies, we are well-positioned to withstand the market fluctuations that come with managing a risk pool over many decades.

Unlike many of our stock company competitors, who are beholden to the short-term concerns of Wall Street, our focus is always solely on the long-term, and the security of our policy holders. This cautious, forward-looking mindset should be considered a hallmark characteristic, if not a prerequisite, for long-term care insurers. This is because long-term care insurance is fundamentally a very long-term proposition, for both the policyholder and the insurer.

Ultimately, long-term care insurance is a 20, 30, 40-year, or maybe more promise. If you are considering applying for New York Life long-term care insurance coverage, you are on the right path.