Speakers: Maritess Bott, Jesse Slome
Maritess Bott:
Hello everyone, and welcome to our podcast. Thank you for joining us. Today’s topic is an important one. We hear about it all the time from our prospects and clients—it’s a scary topic, especially when you’ve worked so hard for your assets and want to make sure they’re passed on to your family. Then people realize, “What if I develop dementia like my mom did?” or “What if I have a stroke and become homebound, needing constant care?”
Or even, “What if there’s a car accident and I end up in a coma?” These are all situations where someone might need long-term or even around-the-clock care.
We have a special guest today—Jesse Slome—who’s been kind enough to join us. He has the expertise to give us some great information. I’m really excited. Jesse, why don’t you introduce yourself and give us an understanding of what you do?
Thank you, that’s great. I think when people come to me, they often assume they’ll need Medicaid in order to receive this type of care. Then they find out it’s very difficult to qualify.
I always share in my seminars and consultations that there are other ways to pay for long-term care—options that are a little different from traditional long-term care insurance.
That’s great, and so true. There’s a big misunderstanding about this. Most people tell me, “I want to stay home; I don’t want to go into a nursing home.” But then they hear how much nursing homes cost, and it’s eye-opening.
What’s really challenging is the middle ground. If you’ve accumulated a couple million dollars or more, you have the luxury of paying for care at home. On the other end, people with very little savings can usually qualify for Medicaid fairly quickly. But most people fall in between.
Many of my clients have saved between $500,000 and $1 million. If one spouse goes into a nursing home at $100,000 a year, those savings can disappear quickly, leaving the other spouse with little or nothing.
When people come to a lawyer, they often ask, “How can I protect my money or qualify for Medicaid sooner?” There are options, but it really depends on their health, assets, and income. That’s why it’s so important for people in their 50s and early 60s to understand this information now.
I always tell clients who are still young, “We’re not doing Medicaid planning yet—you’re only 58—but it’s time to talk with someone about long-term care options.” There are so many different ways to handle this cost, not just traditional long-term care insurance, which to me is like car insurance—you pay every year, and if you don’t use it, it’s gone.
There are also hybrid policies, and while I don’t sell them myself, I do know they exist and can be a great fit for some people.
Exactly. With traditional long-term care insurance, you might buy it in your 50s and not need it until your late 70s or 80s. You could end up paying into the system for decades.
But if you have a major health event—say, a stroke—a year after purchasing it, you’d be glad you had it. It really depends on timing and planning.
Tell us a bit about the underwriting process. What’s required when someone applies, and what types of conditions might lead to being denied for traditional long-term care insurance?
Also, how does that compare to life insurance with a long-term care rider? Is the underwriting process different or less strict?
Good question, and yes, there are differences. [Content omitted from transcript.]
Got it. That makes sense. This has been such valuable information. Is there anything else you’d like to share before we wrap up?
[Closing remarks omitted from transcript.]
Thank you so much, Jesse, for all the information. If any of you have questions about this topic, please reach out to me. I’ll guide you to the right person to speak with. This is such an important subject, and you should make informed decisions for yourself and your family.
