Importance of Long Term Health Care Coverage for Retirees
You’ve worked your whole life for this moment. It’s finally here. The elation you feel about being done with your 9 to 5 is augmented by the fact that you’ve planned for the golden years by setting up a strong retirement plan. Your estate planning documents are in place as well, so your loved ones will be protected in the future. With all the i’s dotted and t’s crossed, it’s time to reward yourself. First item on the retirement bucket list – travel. Maybe live abroad..? You’ve heard Cabo is nice this time (well, all times) of year… Before dusting off the ‘ol flip flops, renewing your passport, and learning how to translate “bartender, another round of margharitas, please,” consideration of media-cal estate planning to cover your long term health should be addressed.
What happens if you become ill after you retire? A sobering reality with 1 out of 8 people 65 years and older suffering from Alzheimers alone. Will the nest egg you’ve created cover your golf outings and nightlife as well as long-term medical costs if you get ill or suffer from something like Alzheimers? Not likely. Grandma and Grandpa are living longer these days. In fact, the 85 years and older age bracket is the fastest growing age group. A 65 year old man now has a 60% chance of living to 80 and 40% chance of reaching 85. For women, the odds are 71% and 53%, respectively. In an era of reduced employee retirement health care coverage, rising health care costs and volatile financial markets, finding the money to cover the costs of health care during the golden years has become an important element of an elderly person’s estate planning.
Estate Planning Healthcare Options for Elderly Class
There are 3 options to secure long-term health care for the elderly retired class as follows.
Medicare
Many people turn to the Feds thinking that Medicare will cover their long term health care needs. Houston, we’ve got a problem. The Feds don’t cover the cost of long term custodial care that many elderly patients like those with Alzheimers need. Relying on medicare is an ineffective estate planning technique for many elderly people.
Long Term Care Insurance
Most people don’t have long term care insurance as part of their estate planning scheme. The reasons are obvious. It’s expensive, has varied and limited coverage, and is not a viable option to provide continued care for most.
Medi-Cal Estate Planning – BINGO!
The superior method of providing continued care for our beloved elderly in California is through Medi-Cal estate planning. This involves qualifying people into the Medi-Cal system by gifting, investment in assets that don’t qualify as “resources” and avoidance of a state recovery lien.
Proper Medi-Cal estate planning allows the elderly person to keep their home, car, and other assets while also ensuring continued long-term custodial care for all types of ailments including Alzheimers.
Medi-Cal estate planning is complex and requires the assistance of an estate planning attorney dealing in elder care law. Please stay tuned for further details and discussion on this subject matter to come.
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