Most individuals have a solid command of what estate planning entails — and the need behind it. They know that estate planning includes drafting a will, powers of attorney, maybe setting up a revocable living trust and more.
Fewer people have heard of Medicaid planning or understand the benefits of engaging in it if they have, however. Many people assume that they won’t need Medicaid. Even if they do, they figure they’ll have unfettered access to these benefits when the time comes.
Without good planning, that’s not likely to happen.
Health insurance doesn’t always cover your long-term care
Many people who might be aware of the concept of Medicaid planning wrongly assume that if they have their own private health insurance plan, there’s no point at which they will ever need to qualify for Medicaid. Even if they do see it as a possibility, they may still be skeptical about whether they need to take extra measures to preserve their eligibility for Medicaid. That’s a misconception.
Long-term care can be expensive. This is particularly the case the earlier in life that you may require it. You may not anticipate, for example, suffering a catastrophic car accident on your way home from work at the peak of your career, yet it could happen. Your family might be unable to provide you with the around-the-clock care you need.
Although you might have had private insurance through your employer when your injury occurred, that coverage will eventually end. Any financial nest egg that you might have been building could be rapidly depleted.
Even if you didn’t suffer a debilitating injury prematurely, you might find yourself approaching 65 years of age, and you may quickly realize that your benefits aren’t enough to cover the high cost of the care that you require.
Medicaid planning ensures that you can afford long-term care without putting your entire family’s financial future in danger. If you haven’t already started to investigate the possibilities, it may be time.