Who really provides a commitment to pay needed on going help with life activities, when your health changes?

When we look around we find over half (54%) of individuals believe Medicare pays for assistance when someone needs on going help with daily life activities. It does not. The annual statement everyone receives from the Social Security Administration includes a confirmation that Medicare does not pay for Long Term Care services.

Many people also think – I’ll just let Medicaid, the government welfare system, pay. It’s purpose is to provide medical care for the indigent and requires spending down all savings.

When applying for Medicaid in Connecticut in 2008 a single person can become eligible after their assets have been depleted to $1,600 and all their income is used to pay for their care. An exception allows $63 to be retained each month to buy tooth paste, hair cuts, etc.

More information on Medicaid requirements can be found on the Connecticut Partnership for Long Term care site.

Both Medicare and Medicaid face considerable financial instability. There are also no guarantees government funded plans will be available to pay for any Long Term Care services in the future.

Long Term Care insurance on the other hand is a signed contract. A person decides on a certain amount of coverage and the contract guarantees this benefit will be available whether it is tomorrow, or in 10, 20, 30 years, etc.

Note: Long Term Care services are not just used by people in their later years. Over 40 percent of those now using these services are between 18 and 64!

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