Long Term Care Insurance

Why You Need to Have a Plan for Long Term Care

You should have a plan because LTC services are costly and the risk of needing LTC is high (once you reach age 65, lifetime chances are about 1 in 2). LTC can be required at any time during your lifetime, so it's important to have a plan even in younger years when you might not be thinking much about it. Since the need for LTC services can be devastating emotionally, physically and financially, you will be in a better position if you know your care options and make your plan in advance.

LTC includes a broad range of health and support services, and many of these services are personal care that families are able to provide all, or some of, free. Yet as an individual's care and support needs increase, paid care typically is required to supplement family-delivered services, provide respite to family caregivers or to pay for more extensive services in a facility such as a nursing home or assisted living.

While families are the best starting point to deliver informal LTC services in the home, you should consider factors such as your adult children's needs to continue working at their full-time job and/or raise their own families. Also, it's important that spouses who intend to care for each other in a time of need have a plan for how Long Term Care would continue to be delivered if the healthy spouse (informal caregiver) passes first.

Currently most people who do not already reside in a Continuing Care Retirement Community (CCRC), or plan to finance their lifetime LTC needs through such an arrangement, have three basic ways to plan ahead for Long Term Care:

1. Self-insure, which means setting aside liquid funds to cover the potential cost of LTC services which easily can amount to hundreds of thousands of dollars
2. Decide to rely on public assistance (Medicaid), which requires that you spend-down your personal assets and meet an income test before any LTC care will be covered (and then only by Medicaid-approved providers)
3. Insure a portion or all of the risk with a private Long Term Care Insurance policy (you must be insurable under the company's underwriting guidelines)

Private Long Term Care Insurance policies usually are purchased for reasons such as wanting to be able to remain in your own home for as long as possible; feeling assured that funds would be available to pay for any necessary LTC services; or not wanting to spend a lifetime's worth of accumulated assets due to an unexpected deterioration in health.

It's important when considering the purchase of Long Term Care Insurance, that you can afford to pay the premiums and that you feel comfortable working with your Long Term Care Insurance specialist and the selected insurance carrier.

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• Why You Need to Have a Plan for Long Term Care
• Won't the Medicare Program Pay for My Long Term Care Costs?
• Will Public Assistance (Medicaid) Pay for My Long Term Care Costs?
• What Is the Cost of LTC Services Where I Live?
• What Is Long Term Care Insurance and How Much Does It Cost?
• How to Design a Long Term Care Policy to Best Meet Your Needs
• What are "Partnership" Long Term Care Policies?
• Financial Strength Ratings for Top Long Term Care Insurance Companies