Long Term Care Insurance
Hi Terry. When it comes to LTCi, how long should the benefit period last? I understand the importance of adequate inflation protection on the benefits. I was thinking the benefit period should be at least long enough to cover my state’s “lookback” period for Medicaid eligibility. As always, I appreciate and value your input on all things personal finance!
Terry Says
The “average” claim is about 3 years. But many LTCi claims go on longer — think stroke or Alzheimer’s. So consider the possibilties. The lookback period is the time in which you can transfer assets out of your name to qualify for state Medicaid. But if your LTC insurance “runs out” — do you REALLY want to be in a state-funded Medicaid institution?? Or would you rather spend the balance of your assets getting the care you want?