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Senior Moments: Long-term care protection: Who needs it?

Long-term care protection: Who needs it?
By: 
Jim Snodgrass

Do you think it’s possible that you will live into your 80s? If so, do you think it’s possible that you might become frail and need assistance? Have you considered what effect the cost of this care would have on your financial and retirement plans? Today, the median annual cost for a nursing home stay is $87,600. This number will inevitably increase as health care costs increase. And don’t be fooled into thinking that it will be less expensive if you choose to be cared for at home.

Health insurance seldom pays for long-term care services, and the government provides only limited coverage through Medicare and Medicaid. Medicare provides skilled nursing-home care for only a short time following hospitalization and limits help at home to those who need skilled nursing care and rehabilitative therapy. Medicaid is for those with very limited financial resources. Middle income individuals may qualify for Medicaid benefits, but only after spending down their savings.

Long-term care insurance provides protection from these costs. Many people are unaware of the variety of services available through this kind of insurance, including help with daily activities, such as preparing meals, bathing, and dressing, as well as with health care. It is an affordable way to protect against the risk of having to use one’s savings to pay for long-term care, and covers services in a variety of settings.

Whether to buy long-term care insurance depends on several things. People who should consider this insurance include those who are neither rich nor poor and

  • Who want to protect their assets or those of a family member
  • Who do not want to depend on family members for care
  • Who want to make sure they receive high quality care
  • Who want to have more control over when, how, and where they receive care, such as in their homes rather than in nursing homes

For those of you who had the foresight to purchase and maintain long-term care insurance policies, you probably have had or are facing rate increases. Don’t be discouraged and don’t cancel your existing policies without speaking to an insurance professional. Keeping your coverage is still a very wise choice.

Like all insurance products, long-term care policies must be sold by a licensed agent or broker. Ask your insurance advisor for more information. No advisor? Ask friends or people you trust for referrals to agents or brokers. Excellent information is available at the web site for the American Council of Life Insurance/ALCI.com. Just follow this link: www.ACLI.com. Then click on the “For Consumers” tab and select “Long-Term Care Insurance” from the menu list to download a brochure entitled Long-Term Care Insurance: Protection for Your Future.

Remember, long-term care insurance helps people maintain independence and dignity, and eases the burden of caregiving for families. Take action now!