Long-Term Care Insurance

Mary, age 62, and Bob, age 65, have worked hard helping their only child through college and are now looking forward to living the life of empty nesters. The Smiths want to leave their home to their only child, Bob Jr., who plans someday to live in his childhood home and raise his own family. A month after retirement, Bob suffered a massive stroke, was hospitalized for a week, and then was moved to a skilled nursing facility for rehabilitation. After 60 days in the nursing facility, Bob's condition stabilized. Americans believe that Medicare, a Medicare Supplement Policy, and/or private individual or group medical expense insurance covers situations such as Bob's required long-term care. The Smiths have three possible choices to cover Bob's long-term care needs: 1. Cover the costs "out of pocket. 2. Spend down assets and income to qualify for Medicaid. 3. Rely on coverage from a long-term care insurance policy.