Understanding the realities of long-term care helps you prepare financially.

Without proper planning, the high costs of nursing home stays could significantly impact your assets and financial well-being. Here are nine common myths we see specific to planning for long-term care:

Myth 1: It won’t happen to me.

• Reality: Nearly 50% of individuals aged 65 or older may require nursing home care at some point.

Myth 2: I’m covered by Medicare.

• Reality: Medicare covers only a small portion of nursing home costs and is limited to skilled care, not custodial care.

Myth 3: My supplemental health insurance will provide protection.

• Reality: Medicare supplement policies are not designed for long-term care and have similar restrictions as Medicare.

Myth 4: It can’t cost that much to stay in a nursing home.

• Reality: Nursing home care can be expensive, and a significant percentage of individuals become impoverished within a year of admission.

Myth 5: If I cannot afford it, I’ll go on Medicaid.

• Reality: Medicaid eligibility is complex, requiring individuals to virtually deplete their income and assets.

Myth 6: I can transfer assets to qualify for Medicaid later.

• Reality: Most states have rules preventing deliberate asset transfers to qualify for Medicaid-covered care.

Myth 7: My family will take care of me.

• Reality: While some families may prefer caregiving, societal changes make it challenging, considering factors like dispersed families and dual-income needs.

Myth 8: Nursing home policies never pay.

• Reality: Some long-term care policies may not pay if specific conditions, such as prior hospitalization, are not met.

Myth 9: I’ll buy nursing home insurance in five years and save the premiums.

• Reality: Premiums increase with age, and delaying the purchase may lead to ineligibility due to health issues.

Although this information has been gathered firm sources believed to be reliable, it cannot be guaranteed and the accuracy of the information should be independently verifies. Federal tax laws are complex and subject to change. As with all matters of tax and legal nature, you should consult with your tax and legal counsel for advice. Feliciano Financial Group and Lion Street Financial Services, Inc. do not offer tax or legal advice.