In today’s tough economy, there are many people who are without health insurance. But even for those who are young and healthy, illness and injury can occur – and it can bring enormous medical bills when it happens.
These expenses can easily get out of hand, leading to financial hardship, and possibly even to bankruptcy. In fact, the number one reason for foreclosure in the United States today is disability. This is why it is imperative to protect your health and your wealth from the various types of medical expenses that can occur.
Everyone should have, at a minimum, a good health insurance policy. This can help you to transfer the cost and the risk of high medical bills to an insurance company. Nobody can predict when an accident or injury will occur, and even basic medical services can be costly. It is important to protect your family and your savings from excessive medical expenses.
When asked what their most important asset is, most people will answer their home or retirement plan. However, while these are of great importance, your most important asset is your ability to earn an income, without which, gaining other assets would likely be impossible.
With this in mind, it is imperative to ensure you will still receive an income even if you become injured or ill and are no longer able to work. Without such coverage, you run the risk of depleting savings and other assets – especially if your condition lasts for many months or years.
Long-Term Care Insurance
The cost of long-term care services have skyrocketed over the past decade, with the average annual cost of a semi-private room in a skilled nursing home today being just under $80,000 – and the cost of receiving care in your home could be even higher. These expenses can have a real impact on retirement savings, especially if the need for care is lengthy.
Many people have the misconception that government programs such as Medicare and Medicaid will pick up the tab for these costs. But Medicare pays very little in terms of long-term care services, and in order to receive Medicaid coverage you must be at your state’s poverty level in terms of assets and income. In addition, even if benefits are paid by Medicaid, oftentimes a patient’s family must reimburse the program for some or all of the funds received in a process referred to as estate recovery.
Long-term care insurance can provide a way to cover some or all of those costs, either in a facility or in your own home. Most individuals and couples who possess between $200,000 and $2 million in assets can benefit a great deal from such coverage.
In addition, there are many states today that offer Long-Term Care Partnership Programs. Such programs allow these states to exclude the amount of long-term care benefits paid individuals under a qualified long-term care insurance policy from estate recovery.
In order to truly build wealth, it is essential to protect what you already have. The best way to develop a thorough overall plan of protection is to discuss your situation with a qualified insurance professional who can customize a program of coverage specifically for you and your family.
At Romero Insurance and Financial Services, we are independent agents. This means that we are not tied to one particular health insurance company or product, and we can help[ you find the mix of coverage and policies that will truly best fit your specific needs.