Maintaining one’s health should be a top priority for anybody. However, this can be particularly important when planning for the elderly in New York. Making sure that one will be taken care of in old age may require considering the possibility of the need for long-term medical care in the future. This can be quite expensive, especially if one is not prepared for it.
One possible estate planning tool to consider in preparing for healthcare in old age is long-term care insurance. These types of insurance policies are designed to help insured individuals pay for costs related to long-term healthcare needs that are not covered by Medicaid or Medicare. On the other hand, long-term care insurance can come in a variety of forms and with many different options to choose from.
Some hybrid insurance polices combine annuities and life insurance with long-term care coverage. However, these types of insurance policies tend to be more on the expensive side. On the other hand, besides the long-term care benefits, the hybrid insurance policy can provide future income as well as tax-free death benefits. Some financial planners recommend that those with more than $500,000 in assets may want to consider this type of insurance policy; however, each person should consider his or her individual circumstances and goals before deciding whether or not long-term care insurance is the right choice.
Additionally, one should be sure to understand how a chosen insurance plan of any type will integrate into the rest of a person’s estate plan. Creating the correct legal documents that will conform to the insurance policy as well as the overall estate planning strategy is essential in planning for the elderly in New York. Failure to do so can result in serious legal issues and financial problems in the future.
Source: The New York Times, “Long-Term Care Insurance Can Be Costly but Effective“, John F. Wasik, December 25, 2015
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