How To Manage Without Long-Term Care Insurance

Some people are so rich that, when the time comes, they can spend years living in a posh assisted living facility, even those garishly luxurious ones that the media fancifully call “Boomer enrichment centers,” and when it is all over, there will be plenty of money and at least one house for their heirs to inherit, but that is not you. Conversely, some people are so poor that they will never be able to afford to retire, and when they need long-term care, entering a nursing home as a Medicaid beneficiary will be their only choice, but that is not you, either. You have enough assets to make Medicaid lick its chops thinking of how much it can collect from your estate if you live out your days as a Medicaid nursing home beneficiary, but you are not so wealthy that needing to apply for Medicaid is unthinkable. In other words, you are a prime candidate for long-term care insurance, but you did not buy long-term care insurance when you had the chance. Fear not. There are other ways to pay for long-term care, and if you need to apply for Medicaid, there are ways to protect your assets. To find out more about long-term care options that can help you avoid financial catastrophe, contact a Tampa estate planning lawyer.

Sell Your House, If You Own It and You Don’t Need It

The biggest motivation for buying long-term care insurance is to be able to pay for nursing home care or assisted living without selling your house, but selling your house and using the proceeds to pay for long-term care may be the next best option. The proceeds from the sale may pay for multiple years of care, and if there is money left at the end, your heirs can inherit it.

Buy Another Type of Insurance That Provides Long-Term Care Benefits

Long-term care insurance has the highest policy limit for how much it will pay for long-term care, but it is not the only kind of policy that includes long-term care benefits. Whole life insurance covers long-term care, but not as much as pure long-term care insurance, and it can be costly. Hybrid life insurance is an affordable option; most policies will pay for up to five years of long-term care.

Transfer Your Property Five Years Before Applying for Medicaid Nursing Home Benefits

Some people protect their assets by transferring them to a Medicaid trust. This way, the family members who are beneficiaries of the trust can keep the house and other trust assets. Another option is to transfer the property directly to your family member, instead of setting up a trust. Whichever option you pursue, you should do it at least five years before you apply for Medicaid, so you do not run afoul of the Medicaid five-year lookback rule.

Contact David Toback About Makeshift Solutions for Long-Term Care

A Central Florida estate planning lawyer can help you find a way to pay for long-term care if you cannot get long-term care insurance.  Contact David Toback in Tampa, Florida to set up a consultation.

Source:

cnbc.com/2025/05/17/why-long-term-care-costs-can-be-a-huge-problem.html