Protect Yourself, Your Family and Your Future with Long Term Care Insurance

The insurance industry has not changed much in the last hundred years or so. As products have evolved, the representatives have evolved with it. Consequently, the guy who used to sell you car and boat insurance is now also the one who can discuss college savings plans and IRA options. He didn't have much of a challenge to determine that those who have more products, more choices and greater visions would be those who prevail. Within that framework, the industry has introduced a product that is somewhat of a hybrid between health and life insurance - long term care insurance.

I had the distinction of selling this product for some time, primarily because I went in pursuit of it, certain as I am of its importance. Circumstances have taken me out of that arena but I am no less convinced of its value. If you are in your thirties, forties or (preferably) early fifties, don't waste any time in researching and making an important decision in favor of this product.

Long term care insurance is simply this: In the event that you are in any way capacitated, regardless of age or reason, your family members have the ability to file for long term care benefits that will provide for your care in what are referred to "activities of daily living," such as bathing, dressing, eating, etc. Clearly, this is a product that is most relevant to the senior population who are compromised in some way due to decreasing capacity to function and/or physical disability. This is not to be confused with disability insurance that is generally associated with employment, often as part of a compensation package.

What will happen is this: If Mom or Dad needs to have home health care administered for basic care, the policy will provide financial assistance for home health. If and when conditions require more advanced forms of care, the LTC insurance will assist with the costs of assisted living or more critical care skilled nursing (nursing home) or hospice. As the son, daughter, wife or husband, the entire care package will not rest on your shoulders and the insurance will pick up a substantial percentage of the expenses.

As in the case of any other type of insurance (life, auto, homeowners'), a wide variety of suppliers and options are available. You'll want to pay attention to such variables as daily benefit provided (most important for skilled and assisted living), elimination period (amount of time before benefits kick in - the bigger the number, the lower the premium but the more out of pocket for you), exclusions, conditions and potential lifetime maximums.

We all want to believe that the government will be able to assist with these types of expenses, but Medicare is limited to a diagnosis of an acute condition (heart attack, lung failure, etc.) and a specific time period. Medicaid will be available only to those with diminished resources, generally when insured have depleted all assets. There are serious restrictions on gifting in order to "spend down" assets so don't consider that a viable alternative. Having spent hundreds of hours in nursing homes that offer private care versus Medicaid, I earnestly suggest that the more choices available to you with respect to location and actual care, the happier and more comfortable you and your senior will be.

Many factors must be considered. One that is critical, however, is that the ability to qualify for LTC is contingent upon relatively good health. You may also be confident that if you enroll in a policy while you are young and healthy your premium is not likely to increase as you become older and less healthy. Most good policies have a premium guarantee and non-cancellation provision, making certain that the insurance can't arbitrarily cancel you or raise your premium.

Long term care insurance is a relatively new product compared to auto or life insurance. But with millions of people rapidly approaching old age and the mortality tables verifying that people are living much longer, its viability is continues to increase. Contact a professional from any of the large providers. If it's a broker, they can discuss multiple vendors rather than just one. Read the small print and be certain that you understand the terms and provisions.

Don't compromise your future or that of your family or senior parent/spouse. The younger you purchase it, the better, and the greater likelihood that you won't have a medical disqualification. Based on the spiraling costs of long term care, it is certain that the costs will continue to increase beyond most of our abilities to cover them. From my standpoint, this is a mandatory investment rather than an optional one.

We have all known families that are devastated by the financial consequences of aging relatives and this is the best method available to protect against that devastation. The statistics that indicate you will become sort of caregiver are compelling. For your own protection, by doing this, you will make certain that it won't become all that you do.