50+ Lifestyles

Your Advocacy Connection

By Gail Glockhoff-Long
GolderCare Solutions

Demystifying Insurance

Before coming to GolderCare, I worked in the compliance and product development area of a local life insurance company for 23 years. There were days I felt like Flo from the Progressive commercial translating Insurance to English. Insurance is almost a foreign language with specialized terms and alphabet soup of plans. Let me address a few of the more common questions I have been asked over the last year.

How do I pick a Medicare Plan?

At about age 64 you will be inundated with mail and calls from every insurance company you can imagine. There are just too many options and combinations of plans to sort through. Traditional Medicare with a Supplement or is an Advantage Plan more appropriate? Then which option within that category? Next is picking the Part D Drug plan. This is the time to get help. Let your trusted insurance agent guide you through the process.

My Long Term Care Insurance premium keeps going up – should I drop it?

As the cost of long term care increases, the premium for your insurance to pay for that care increases. Fortunately, there are options between keeping and paying for what you have and dropping the policy. Talking to your agent or the company can often find a compromise. Maybe eliminate the 5 percent inflation fighter annual benefit increase. Maybe it is cutting back from 5 years of coverage to 2 or 3 years. Most companies would rather keep you on a more limited plan than to lose you completely. Any amount of LTC insurance you have means that much less you will pay out of pocket when you eventually need nursing care. An Iowa Partnership policy is even more valuable to keep.

Mom moved to Assisted Living and no one is living in the house – is it still insured?

That depends. Some insurance companies drop the
coverage 60 days after they know no one is living in the house. Some will refund back the premium and not pay the claim. State Farm and some other companies have a Vacancy Endorsement that is a higher cost but covers the house while no one is living in it until it is sold. Don’t wait until after the house fire to find out that the house is no longer covered.

I have Life Insurance – do I have to cash it in if I need Medicaid?

That depends on the type of policy, the insurance amount, and a few other factors. In most cases, life insurance that builds a cash value (whole life, universal life) will need to be surrendered and proceeds used to buy a prepaid funeral. But that is not always the case.

Dad has an IRA Annuity, savings, stock and a house- what do I use first to pay for his care?

Often times the best time to use tax deferred funds is when you have high medical cost for tax purposes. We consider how long the person is anticipated to need care, cost of care vs income, tax consequences, step-up in value. Each situation is unique and needs a thorough evaluation to determine where to take the money to pay for care.

When Mom needs a Nursing Home – Medicare pays for that right?

No, Medicare is medical insurance and only pays for things to make you better – it will pay after a hospital stay for rehab to make you strong enough to go home. Rehab patients locally tend to average 17 days paid by Medicare. It does not pay for long term custodial care.

Are you overwhelmed by insurance and what you may need as you age? GolderCare’s October Senior Empowerment Series, Benefits: Insurance, Medicare and Public Entitlements, is a free seminar on about understanding your insurance so you can optimize your savings options and add quality of life. There are two options to attend. These events are free and open to the public.

• Wednesday, October 2 at 10 AM – GolderCare Education Room, 1900 State Street, Bettendorf
• Wednesday, October 16 at 10 AM – Moline Public Library, 3210 41st Street, Moline

GolderCare is an independent advocacy group for seniors and those who are disabled. We assist families with the complexities of long-term care and public/private benefits. We look forward to meeting you and learning more about your situation. We are here to help you and your family with your senior-related needs.

Gail Glockhoff-Long is a Benefits Advocate and Insurance Specialist at GolderCare Solutions. You can reach Gail by calling (309) 764-2273 or visit www.goldercare.com for more information.