 Long Term Care Insurance is not right for everyone. A consultation with a can help you quickly determine
There are a number of things to think about when considering Long Term Care Insurance.
Some important issues to consider as you investigate your Long Term Care Insurance options with us or another company are:
Possibly, but it really depends on your specific circumstances. A long term care specialist is trained to help you determine what your needs and requirements are for long term care. It can help give you a sense of security that you have a plan in place and the resources available to pay for quality care in the place you want to be. Long term care insurance is NOT right for everyone. Working with the right long term care specialist can help you determine if its right for you.
You should consider buying long term care insurance if...
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You are concerned about protecting your assets and income. |
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The premiums will not affect your current lifestyle. |
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You want to maintain independence and not have to rely on family or friends for care. |
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You want to have the ability to choose where you receive your care. |
You should not consider buying long term care insurance if...
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You are currently eligible or will shortly be eligible for Medicaid (not Medicare) benefits. |
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You do not have significant assets to protect and it would affect your lifestyle to pay premiums from your income. |
You should consider the following items before considering the details of a Long Term Care Insurance Policy
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The policy should be customized to your specific personal and financial needs. It should not be a generic standard plan. |
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The premiums should be affordable. |
Most people consider Long Term Care Insurance for one of the following reasons.
 Don't Want To Rely On Family
People are very concerned that if their health failed they could need to rely on their spouse or family members. The impact to the family can be . Access To Quality Care
People want to be able to make choices. They want to receive care in their own homes or an assisted care facility much more so than in a nursing home. If they must go to a nursing home, people realize that accessing the best nursing homes usually requires paying for it privately or through an insurance policy. Asset Protection
Most people want their hard-earned assets to pass on to their families or charity rather than spending those assets on long-term care. Control and Independence
To most people, their money can assure their financial independence. My grandmother, Aline Pfefferle used to say, "Don't outlive your money. When your money is gone, you do what others tell you to do." Long Term Care Insurance can represent choice and control over one's own life rather than relinquishing it to others. Aversion to Welfare
Welfare represents a stigma to many people. The idea of "spending down" assets in order to is unacceptable to many people. Some people don't want to be dependent on the Government for care or aren't positive the Government will be able to provide for their care in 20-30 years. Sense of Security
Some people have difficulty explaining the exact reason why they purchase Long Term Care Insurance. The decision to purchase a Long Term Care policy comes not from an analytical, cost-benefit decision, but rather from the tangible desire to have a sense of security. Being able to go to bed at night knowing one is protected instead of worrying about what to do if something happens, is a feeling many people desire.
 Myth: "I don't need to worry about long term care because my spouse and/or children will take care of me."
Reality: In past generations, it was more commonly expected that a son or daughter would care for their parents when they needed care. A major change seems to be occurring with respect to society’s view of family responsibility: fewer people expect their loved ones to bear the burden of their care.
Less than 6% of boomers believe that their spouse or partner should be responsible for taking care of their long term care needs. More than 1/2 of those surveyed under age 40 believe that their children should play only a minimal role in providing care, and less than 1% of baby boomers believe that their children should play a major role.
GE Center for Financial Learning, the STAT Survey "Secure Tomorrow’s Autonomy Today." 2003.
Some other things to think about if you expect your family to care for you are:
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Would one of you have to move to live close enough to provide care? Which one of you will it be? |
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What is the impact on your children’s children? |
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Will one of your children have to quit or reduce the hours they work on their job to care for you? |
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Do your children have the skills necessary to take care of you? |
Myth: Long term care insurance is too expensive.
Reality: Few younger and mid-life adults accurately understand the cost of purchasing long term care insurance. Only 25% of baby boomers answering the STAT ("Secure Tomorrow’s Autonomy Today", GE Center for Financial Learning, 2003) survey accurately estimated the cost of long term care insurance, while nearly 75% of all survey respondents overestimated the current cost of long term care insurance premiums by as much as 300%.
In the fields of transportation, communications, utilities, finance, real estate, and government, about ¾ of employees 40 and older can afford a three-year long-term care policy offering comprehensive coverage with inflation protection (73-79%).
"Passing the Trust to Private Long-term Care Insurance." January 2003. p. 10. American Council of Life Insurers.
Myth: I have long term care benefits in my work benefits package.
Reality: Long term care insurance is a relatively new benefit that is made available to employees. Do not mistake your health insurance or long term disability insurance for long term care insurance. Typically those benefits are only available to employees while they are employed. When you leave, those benefits stop. What we at AM Warner Insurance have found in comparing long-term care insurance available through an employee group plan and a plan available through an independent insurance company is that people can obtain coverage they are more comfortable with through an independent insurance company. We welcome the opportunity to perform an objective comparison for you.
Many of the baby boomers over age 55 mistakenly believe they are adequately covered for long term care expenses through their workplace benefits packages. However, their health insurance plans may only cover very limited long-term care expenses. As a result, many boomers unknowingly face the risk of having their accumulated assets depleted by long-term health expenses that follow an unexpected event in their lives.
Conning's Industry Insight, Long Term Care Insurance, Issue #4. June 2002.
Do You Even Qualify?
Do you want to know if you qualify for Long Term Care Insurance?
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