Is Long Term Care insurance right for me?
Q. What are the main advantages of having long term care
insurance?
1. The freedom to CHOOSE WHERE YOU WANT TO RECEIVE CARE! Most people would like some privacy and to be cared for in the comfort of of their own home.
It is your option, however, to choose a policy that will also cover care in a
variety of facilities and nursing homes.
2. Protecting your lifetime assets and savings against the rising costs of medical care.
3. Preserving your independence, and not having to rely on family for all your
care needs.
Q. What about my family? I'm sure they would be willing to take care of me!
Caring for family and other loved ones without outside support is financially and emotionally draining. U.S. workers caring for aging family members report higher levels of stress and lower work performance than workers whose dependants are children. Elder-Care Stress, Time, April 2001
Caregivers must adjust schedules, arrive late for work, and take longer lunch breaks to meet the demands of caring for an older loved one. They also report frequent interruptions in their work day to handle caregiving responsibilities.
Long Term Care Insurance: Debunking the Myths, American Health Care Assoc., April 2001
Asking family for help often imposes impossible burdens which cannot be
carried out by those who love you. Family members may be physically or emotionally unable to care for a loved one. Many families depend on a
two-income household. There may be geographic differences and travel times cannot be managed. The repercussions of loss in worker productivity may cause family members to lose job stability.
Q. I'm really a healthy person...Why would I need long term care insurance?
Nearly half of all Americans will need long term care at some point in their lives.
One in five over the age of 50 is at high risk of needing long term care within the next twelve months. Consumer Information About Long Term Care-American Health Association, 2002
Having good health today does not mean things cannot change. If you wait until this happens, you may not be able to get insurance at any price. You and your loved ones could be faced with huge medical bills and the prospect of paying
them all yourself.
Q. I already have health insurance...Why would I need long term care insurance, too?
Health insurance and long term care insurance ARE NOT THE SAME THING!
Health insurance ususally pays for the cost of injuries and illness. Health
insurance covers lab tests, hospitalization, and doctor visits. Medicare is very similiar.
Long term care insurance is designed to cover ongoing care and services needed
for those unable to care for themselves. Long term care is needed for physical or mental limitations and difficulties. This care may be Skilled Care or more often Custodial (Personal) Care. Personal Care is needed to help someone with their
daily activities - getting dressed, eating, bathing, etc.
Q. What is the risk of doing without long term care insurance?
Many times, once people begin paying for a stay in an LTC facility, they find their savings are not sufficient to pay for a lengthy time. A Guide to Long Term Care Insurance- Health Insurance Association of America 2002-03
Not preparing for the cost of paying for a nursing facility or other types of long
term care is the LEADING reason for the loss of financial security among retired persons.Long Term Care Insurance: Debunking the Myths, American Health Care Association, April 2001
Long term care insurance helps protect your nest egg, your lifestyle, and ensures your continuing financial security.
Q. What are the odds of this happening to me?
When compared with the potential of making a claim on your homeowner's policy due to fire (1 in 1200); or of using your auto insurance (1 in 240); the potential
risk of needing long term care is close to 1 in 2! Why you Need Long Term Care Insurance- Kiplinger, Back to Basics, September 2002
Q. How does long term care insurance protect me?
It is specifically designed to pay for long term care services. It helps cover
nursing home care, in-home care, community-based care such as adult day care, and assisted living care. It usually pays the actual charges for covered care up
to a daily maximum dollar amount. Coverage can last for a period of years or
until a maximum daily and maximum dollar amount if reached. (You can choose
the maximum daily and maximum total amounts when you purchase policy).
Indiana Long Term Care Insurance Program, Office of Medicaid Policy and
Planning
Q. When is long term care insurance not the right option for me?
1. If you have little or no assets. At a minimum, your assets should be equal to
the cost of one year in a nursing home (about $44,000).
2. If you are already disabled or have a serious health problem which puts you at high risk for needing long term care. In these instances, you will probably not be able to pass the underwriting required by the insurer to obtain coverage.
3. If you have limited ability to pay premiums. Paying premiums should not cause you to deny yourself essentials like food, shelter, utilities, or medicine.
DID YOU KNOW?
"About 7 million Americans have turned to private long term care plans to protect their assets."
Long Term Care Insurance of America, March 2000
An estimated one in two Americans will need long term care services at some point in their lives.
Long Term Care, Your Financial Planning Guide, Kennsington Publishing Corp., 2001
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Almost 80% of elderly disabled and 41% of
severely impaired individuals live at home or
in community-based settings.
Aging Committee: Hearing Finding Summary. A Report presented by the Senate Special Committee on Aging, June 2002
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In the next 30 years, projections of the number of seniors needing long term care will exceed 6 million,
with family and other informal caregivers providing
much of this care.
Who Will Care for Each of Us? America's Coming Health Care Crisis, UIC Nursing Institute, 2001
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Life Expectancy after age 65 is now 17.9 years, and increase of 4.9 percent since 1940, and by 2030, this population will more than double to 70 million.
The Older Population, A Profile of Older Americans: 2001, Administration on Aging
If you knew you had a 1 in 2 chance of losing $30,000 to $100,000 per year, wouldn't you want to protect yourself against the odds?