Question:
My husband and I are in our late sixties and we are looking at long-term care insurance? Is there anything in particular we should look for?
Answer:
With the average cost of nursing home care in Michigan at over $8,000 per month, it’s always good to plan for long-term care issues. You may consider “traditional long-term care insurance” where you pay quarterly or annual premiums and a certain amount of long-term care is paid for you if you ever need it. I’ve heard this called “use it or lose it” insurance. The downsides of this type of insurance are: (1) it can be expensive (and premiums have been increasing); and (2) if you don’t need it for long-term care and you die, you get nothing back. There are other “hybrid” long-term care products where you invest a certain amount up front, and you will receive a multiple of your investment back if you ever need long-term care. For example, you may invest $100,000 which will earn interest. If you ever need long-term care, the policy will pay up to three times the amount of your investment ($300,000) toward your long-term care. It also covers several care options – from home care to assisted living to skilled nursing – so it is very flexible. If you never use the policy for long-term care, the investment plus interest will go to your beneficiaries with no probate required. These are just a couple options. If you would like to learn more, we offer a free consultation to talk about all of your long-term care needs.
Glenn Matecun is a partner with the law firm of Matecun, Thomas & Olson, PLC in Howell. He answers readers’ questions on legal matters affecting individuals, their families and their businesses. Email questions to [email protected], or if your question is urgent, call (517) 548-7400. The information in this column is not intended as legal advice.