Long Term Care Awareness Month
November is Long Term Care Awareness Month. We have no problem recognizing other exposure to loss in our lives such as our cars or our homes. We understand that these items can be damaged by theft, fire, etc. Insurance provides the means of indemnifying us in case of loss. We are even aware of the need to plan ahead for our retirement.
Well, isn’t it just as smart to plan for our ”Golden Years?” After all, we are an aging population and chances are we will live well into our 80’s, 90’s or even longer. Without proper planning for ever increasing medical and housing expenses, all the assets we have worked so hard to protect all these years will be at risk…. of disappearing!
What is Long Term Care?
It includes a range of services (in your home or in a facility) to assist you if, and when you suffer the ill effects of aging such as chronic or prolonged illness or disability leaving you unable to perform certain “Activities of Daily Living” for an extended period of time. These illness/disabilities can include Alzheimer’s, Parkinson’s, stroke, cancer, or just a bad accident. The daily activities I am referring to are bathing, walking, eating, getting dressed, etc. I know for myself, I find it hard to imagine needing assistance with any of these activities and I would guess you feel the same. However, statistically it is a fact that, 70% of people who reach age 65 will require long term care services at some point in their lives.
Needing such care puts enormous emotional, physical and financial burdens on loved ones and family members. They are the real reason for you to start this planning process right now without further delay. Incorporating long term care (LTC) insurance into your financial plan can help protect you and your assets, it can reduce the burden of care that would otherwise fall upon family and can enable you to receive the care you require in the setting you most prefer. This means you can have quality family time with people you love instead of feeling stressed and anxious due to the financial and emotional burdens of aging and possible deterioration of your health. This is most certainly a Win-Win Plan for all concerned!
The best time to start planning
is between the ages of 40-60 when your health is good and premiums are lower. People often ask “how much does LTC insurance cost?” That is entirely up to how much coverage you buy, how your policy is designed, your age and health when you apply. It is suggested that you review the current cost of care in the area where you expect to retire, estimate the number of years you would want your coverage to last and then target an amount of money you would need to help pay for long term care expenses. In addition, keep in mind, a LTC policy is only as expensive as you make it.Incorporating flexibility into the design and product features enables the coverage to be affordable and within most budgets.
Do not be fooled into thinking that your medical insurance or government programs are designed to pay for any or all of your long term care needs/expenses. Medicare will only pay for skilled nursing care while Medicaid only covers those whose assets are at or below state-required levels. None of these programs provide coverage for care in your own home.
The first step is up to you. Call your trusted professional independent insurance agent today to get the LTC planning process started.
