Solomon, in his great wisdom, describes in Ecclesiastes Chapter 12, a time in man’s life when he will grow old and cease to have pleasure – a time when he might not be able to stand up straight, and when the one who wears glasses will not be able to see out of them. This man’s hearing has deteriorated, and he is afraid of heights. This time comes upon each of us at various ages and in varying degrees. At some point he is likely to be heard saying, “I just cannot do what I used to do”. When that time comes for us, will we be ready for the days ahead? Can we afford the medical bills we will incur? Who will take care of us if we cannot take care of ourselves? How much is this care going to cost us? Solomon said we should “Remember now our Creator in the days of our youth.” Maybe we can learn a lesson from this wise king and start planning for these days.
Regarding Medicare, it has been said, “Medicare pays some of the costs of some of the things but not all of the costs of all of the things.” This is so very true. Medicare Part A covers some of the costs of your hospital stay, but not all of the costs. There are deductibles, co-pays and co-insurances that you will be required to pay out of your pocket. There are also costs that you will incur that are not covered by Medicare while you are hospitalized. These payments will also come out of your pocket.
Part B of Medicare covers your medical expenses (doctor bills). Again, Medicare will not cover all the costs, thus leaving the remainder for you to pay out of your pocket. Supplements are an excellent product to add on to your coverage, and they serve to cover many of the costs that you would be expected to pay out of your pocket.
There are still times when your Medicare will not cover a specific expense, and your Supplement will not cover the cost, so then what can you do to secure the quality of care you need? If you have been in the hospital and are dismissed into a rehabilitation facility, Medicare Part A will pay for the first 20 days of rehabilitation. If care is needed beyond the twenty-day period, and you are still rehabilitating, a Supplement Plan might cover up to the remaining 100 days. Now the question is what if you are no longer rehabilitating – you will then have to private pay or return home for your care. At this point, Long-term Care insurance would be a benefit. Long-term Care insurance covers care generally not covered by health insurance, Medicare, or Medicaid. If you cannot perform two of the activities of daily living, you may qualify. DO YOU WANT TO GIVE A FOR INSTANCE ON THESE ACTIVITIES??
Long-term Care insurance can be purchased in several ways. It may come as a capital investment where you would make one premium payment, or as a series of equal payments for a set length of time. You may elect to invest in a Universal Life policy that has a Long-term Care rider attached, or you may choose to purchase Whole Life insurance that has a growing cash value which may be withdrawn to cover your long-term care needs.
Which path you take is important, but so is the timing for such policies. If you want insurance, you should start looking in your 50s or early 60s, before premiums rise sharply or worsening health rules out more forceful coverage.
Still have questions? Feel free to call our office at 615-895-8574 to speak with Mr. Medicare, Hillary Broome.