Need For Long-Term Care Insurance
but true. In a little over 200 years life expectancy in the United
States has doubled. In frontier America only 1 in 10 people could
expect to see age 65. Today almost 80% of us will live past age
65. What is really remarkable, based on trends projected by the
Social Security Administration an estimated 12 million Americans
alive today will bring in the NEXT century in 2100!
But as more
and more Americans age, they suffer chronic disabling conditions
that require long term care either at home or in a nursing home.
Alzheimer's, Parkinson's, osteoporosis, heart disease, stroke and
memory loss predominately cause chronic disability among those over
find out the hard way that Medicare and Health insurance DO NOT
cover most long term care costs. Instead those who need extended
care must rely on their IRA's, 401ks and investments to pay for
care and when those are reduced, turn to Medicaid.
the federal/state welfare program that pays for health care for
the poor. Since Medicaid is an entitlement for the Nursing Facility
only, choice is diminished.
Is Long Term Care?
Long Term Care
is the help needed to assist in the performance of activities of
daily living. These activities include: bathing, dressing, toileting,
continence, transferring/mobility and feeding. Care may also be
needed to assist an individual with a severe cognitive impairment
(such as Alzheimer's disease). Long term care may be provided in
a person's home, in adult day care, assisted living or a nursing
home Long term care may be provided in a person's home, in adult
day care, assisted living or a nursing home Long term care may be
provided in a person's home, in adult day care, assisted living
or a nursing home.
The types of
care that peoplereceive fall into the category of skilled or custodial.
care is administered by a skilled nurse or therapist.
care is help with routine activities such as bathing, dressing,
toileting, continence, transferring/mobility and feeding.
Both types of
care are available 24 hours a day. The most common types is custodial
Facts About Long-Term Care
One of the best
ways to fully understand the urgency and magnitude of the emotional,
physical and financial cost-crisis of long term care is to examine
"One in five Americans
over age 50 are at high risk of needing long-term care service during
the next 12 months!"
- Harvard university study 1995
"The average cost of a one year stay in a nursing home
in New Jersey currently runs $50,000-$90,000 per year. Care at home
runs about $18 per hour or about $25,000-$60,000 per year."
- 2002 ElderCare Associates, Inc.
"Long Term Care Insurance helps ensure you receive
the level of care you need, in the setting you choose, without losing
your life savings."
- Business Week 10/14/96
is being shut off ... currently there are two options: save enough
to cover your own expenses or buy Long Term Care Insurance."
- Newsweek 11/20/95
Term Care: A National Health Care Crisis
The thought that care
may be required for the rest of your life is an overwhelming thought.
As a result, many people put off dealing with the issue.
Even though none of us
ever thinks that we are the one to need long term care, I encourage
you to ask the following questions:
- What would happen if
I suddenly needed Long Term Care?
- How would this affect my family?
- What would happen to my IRA, 401k and investments?
- What is my Plan Today?
no one ever plans on needing long term health care, it makes sense
to ask yourself the following questions: "What would happen
if I suddenly required long term health care? How would I pay for
it? What effect would it have on my family? Would the cost of such
care seriously deplete my hard earned assets?"
The Reluctance To Plan ForThe Event?
If you value
a secure future and your familys financial independence, youll
not only pursue answers to these critical questions, but also seek
a viable solution to what is quickly becoming the number-one worry
experience meeting with several thousand people over the past decade,
I notice there are 3 common reasons or excuses given by most individuals
to explain why they don’t have or think they need long term
care insurance. They are:
never going to need care!"
2) "Im already covered by Medicare or Health Insurance
3) "I cant afford the insurance."
explore each of these concerns.
Going To Need Care!"
People who fall
into this category state emphatically “I’m never going
to need care! I’m the picture of health. I golf, play tennis,
swim, jog, run the marathon in New York, Boston and Kenya (annually).
Ironically, those who take care of themselves the best may need
long term care the most, because they won’t die suddenly of
a massive heart attack.
While many people
perceive the risk of needing long term care to be less than 25%,
the actual risk for needing care (either home care or nursing home
care) is over 50% according to a 1994-1995 profile by the health
insurance association of America/Life Plans, Inc. For many people
it won’t be nursing home care they need as much as in-home
care. However, in-home care in New Jersey can cost almost as much
as assisted living.
statistics mean one thing to you: When it comes to the risk of neeeding
long-term care; the other guy may be you.
People who fall
into the second category are commonly overheard saying, "Im
already covered. I have Medicare or Health Insurance. And if those
dont cover me, Medicaid will."
The fact is
this: Most long-term care costs are not covered by Medicare or Health
Insurance. And Medicaid will help only after you spend down your
In the past,
it has been common practice for people to transfer assets to qualify
for Medicaid. Some things to consider currently:
for Medicaid is becoming increasingly difficult.
choice of care may be severely diminished if Medicaid pays your
you really want to rely on a bankrupt Medicaid system to shelter
just can't afford more insurance."
who fall into this category are overheard saying, "Okay, private
long term care insurance may be seansible, but "im paying for
medical insurance, care insurance as well as homeowner insurance.
I just can't afford any more insurance."
The fact is
this: some level of long term care insurance is propbably more sensible
then having no long term care insurance at all.
If you cannot
afford or are not willing to pay premiums on long term care insurance
today, how are you going to afford $50,000-$100,000 annual cost
of care tomorrow?
PEOPLE ACT NOW TO ACQUIRE LONG TERM CARE INSURANCE.
If you come
to the conclusion that some level of insurance is needed, there
are two reasons to act now.
First and foremost
is the desire to protect your insurability. To own long term care
coverage, you must health qualify. If your
health changes, it could render your uninsurable for long term care
The second reason
to act now is that the premium is based on the age that you apply.
Simply put, the younger you are, the lower the premiums.
NOW AGAINST THE POTENTIALLY CRIPPLING COSTS OF LONG TERM CARE.
experts agree that living longer - and the significant health care
cost associated with is phenomenon- has created a new and truly
serious need for theis insurance. as a matter of fact, a plan to
guard against the cost of long term care is now the single most
important health insurance purchase that today's consumers can make.
For a relatively
small cost today, most people can help insulate themselves against
the emotional traum and financial tragedy of long term care expenses
of perhaps $100,000 to over $1,000,000 down the road.
if you think that Long Term Care Insurance seems rational, explore
the option Today. Tomorrow may be too late.