Page 66 - Senior Link Magazine Winter 2023 - Online Magazine

SENIOR RESOURCES

A LITTLE MORE

Peace of Mind says Medicare only covers about 5% of

IN the total national bill for these expenses
and is not LTC insurance.
reTiremenT What about Medicaid? This is a benefit
that each state provides, but it offers both
good news and bad news! The good news

by Lowell Bridges is that Medicaid currently pays for about
45% of the national bill for LTC. The
bad news is that Medicaid was designed
for low income and impoverished
n our last edition, I discussed ways to take care of the possibility that you will Americans, not for the middle class. It
gain peace of mind in retirement by exhaust your savings or need to sell your is a form of welfare and requires you
Iusing an income annuity to generate a assets? The odds that you will need some to spend your savings and other assets
guaranteed lifetime income. To gain even form of long-term care (LTC) are around before it kicks in to help—probably not
more financial peace of mind, I would 70% according to research. However, what you had in mind for retirement. Are
like to explore the reasons why sound, only 30% of Americans have purchased there any other choices?
long-term care planning will reduce LTC insurance to cover those costs.
family stress and what your options are. If you choose to buy an LTC policy to
Long-term care needs can be very cover the costs, remember that you will
Knowing you have the funds to pay for expensive, and that care will depend be paying for the policy for life, even if
long-term care expenses takes the burden upon how you receive the care you you do not use it. You will also have to
off you and your family’s shoulders. If need: home based care, assisted living, medically qualify and be accepted by an
you do, then take a big sigh of relief for a or nursing home care. LTC may be less insurance company unless you have an
minute. If not, what plan do you have to costly if a family member becomes your employer-sponsored group plan. So what
primary caregiver. else is available to protect your hard-
However, this will earned retirement assets? Well, I have
take an emotional found the answer for the rest of you!
and physical toll
on your caregiver, It is called a Long-Term Care Indexed
not to mention Annuity. This type of annuity does not
missed work and require medical qualification. It will cover
out-of-pocket up to three times the amount you deposit/
expenses they premium and give you tax-deferred
will likely incur. growth on your money, even if you never
So, what other use the LTC benefits. It will return the
options do you unused funds to you or your family. This
Lowell Bridges have to protect type of plan is a win-win strategy for the
806.790.1625 you and your retiree and will definitely give you “more
2513 86th ST ste.A, Lubbock, TX 79423 AFC member 2023 family? peace of mind in retirement.”
www.seniorbenefitssolutionsofwesttexas.com
Government
programs, such
Association of Financial Consultants (AFC) is an IRS-approved
501(c)(3) non-profit organization. AFC serves as an informational as Medicare,
teaching resource for the general public. AFC member fiduciaries and are restricted or
consultants are committed to public service. We offer Educational limited when it
workshops and classes at no cost or obligation to the attendees. comes to paying
for LTC. Research

A special thanks to Tom Hegna, author and lecturer, for many ideas contributing to this article. Also, CMS
Medicare & You Handbook 2024. Pp. 55-56

66 Lubbock Senior Link