Long Term Care Insurance - Why Medicaid Can't Take Its Place

Some people may argue that long term care insurance isn't necessary in the belief that the government pays for it through medicaid. Nothing could be farther from the truth. Here's why...

What is Medicaid? This is a nationwide health care program. However, it is operated and administered by the states. "Each state decides who is eligible; the amount, duration, and scope of services covered; rates of payment for providers; and methods of administering the program". It is usually for low-income earners. But it must be said here that this is not the case in every state.

Medicaid requires that you meet your state poverty level before you are entitled to it. You'll pay for long term care if you need it unless you're below your state's poverty level. You'll keep paying out of your own pocket until you get to that level. Then and only then does Medicaid kick in.

To give you an idea of how devastated you'd have to be to "benefit" from Medicaid, look at the only things you can own and still be entitled to Medicaid...

1) Your home


2) One car. You can't keep a second car


3) Household goods


4) Business Property & Real Estate


5) Term Life Insurance


6) Mortuary Trust & Burial Plot (up to $1500)

This may seem good enough for some people. However, I must add that you may still end up losing your home and estate when you pass on. Through "estate recovery" the state could claim your assets to recoup what they spent on your long term care. Believe me, things do go awry for some folks.

Furthermore, you really have little or no choice in which facility you end up in. Remember, you're on welfare. You can spare yourself all such pains by doing the wise thing -- Get a long term care insurance policy.

You can get lower long term care insurance quotes by obtaining quotes from at least three insurance quotes sites. It's free, quick and easy.