Specialist, LTCi, DI, Annuities, Life, Designs In Life, LLC, Utah
Maybe one should not get long-term care insurance. Let's start there.
If an individual or a family has a sizeable estate that either is liquid or can be liquidated and be made readily available to pay for the cost of long-term care, maybe long-term care isn't needed.
If, on the other extreme, you have a very small estate comprised of no real estate and very little personal property of any worth and will rely almost entirely on Social Security in retirement, you can't afford long-term care premiums, now or in the future. You will have to have a plan, however, in case you do need long-term care. A family discussion around the topic should be scheduled so that those that might become either temporary or permanent caregivers are fully apprised of the responsibilities and sacrifices that may have to be made. Medicaid qualification should be fully investigated and the benefits and limitations understood.
People buy long-term care for roughly the same reason they buy life insurance. One buys life insurance because they care about the financial security of those that are left behind. One buys long-term care insurance because they care about those that might have to take care of them if they can't take care of themselves.
Long-term care costs are not covered by conventional health insurance, Medicare, and most Medicare supplement insurance. They can be very expensive, especially if the elderly person lives a long-period of time in a state of incapacity. Caregivers will be spouses and adult children are likely to be caregivers whether one owns long-term care insurance or not. Long-term care insurance is for caregivers. It gives them choices about the quality of care that can be afforded and whether they can be relieved of some of the responsibility for caregiving.
Many elderly spouses of those that can't take care of themselves become disabled themselves because of the emotional and psychological energy expended in caregiving. Adult children sometimes get caught in a conflict over eldercare and parenting growing children. Long-term care insurance provides income-tax-free money to hire trained individuals to care for loved ones. Ultimately, it allows the insured to die with dignity and peace.
Getting back to the wealthy that don't need to buy long-term care insurance, guess what? Many wealthy couples and individuals do. They understand leverage: paying smaller dollars now for larger dollars later, if needed. They also understand that in many situations, premiums for long-term care may be tax-deductible.
What about the middle class? They would have to design their coverage to help offset the cost of long-term care. No matter how much one spends, no long-term care insurance policy can guarantee to cover all possible long-term care expenses. But, the average claim is about 24- 26 months. Buying a long-term care policy with a pool of money sufficient to cover at least part of those costs would be prudent. Is buying a basic plan for long-term care that would pay only half of one's long-term care costs be a bad deal? I don't think anyone that's paying $400/day for facility care and being reimbursed for $200/day would find that of no value.
Everyone comes into the discussion about long term care insurance from a different angle, because we all have different experiences. As an insurance website, we rightfully describe the financial implications of the products in question. But as human beings, we interject our experiences, as well.
Some of us see it from the view of the caregiver/family, having been caregivers by default for a parent who did not have long term care insurance, or watched our "healthy" parent struggle to care for the sick one. Some of us have adult children urging us to get long term care insurance because they know that they would have to give up homes and jobs to come care for us.
Some of us see it from the view of the person needing the care. Time spent in a nursing home quickly reveals those who could have had a higher quality life living in their own home, with the resources that LTC insurance provides. There are the "rich" in the single room whose resources are dwindling with each passing year, and who may eventually not be able to sustain that luxury of a private room by having to go on Medicaid.
No matter what angle from which you view it, there are good reasons to get long term care insurance. There are also reasons not to get it, as Mr. Bridgers so eloquently stated about both sides.
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If an individual or a family has a sizeable estate that either is liquid or can be liquidated and be made readily available to pay for the cost of long-term care, maybe long-term care isn't needed.
If, on the other extreme, you have a very small estate comprised of no real estate and very little personal property of any worth and will rely almost entirely on Social Security in retirement, you can't afford long-term care premiums, now or in the future. You will have to have a plan, however, in case you do need long-term care. A family discussion around the topic should be scheduled so that those that might become either temporary or permanent caregivers are fully apprised of the responsibilities and sacrifices that may have to be made. Medicaid qualification should be fully investigated and the benefits and limitations understood.
People buy long-term care for roughly the same reason they buy life insurance. One buys life insurance because they care about the financial security of those that are left behind. One buys long-term care insurance because they care about those that might have to take care of them if they can't take care of themselves.
Long-term care costs are not covered by conventional health insurance, Medicare, and most Medicare supplement insurance. They can be very expensive, especially if the elderly person lives a long-period of time in a state of incapacity. Caregivers will be spouses and adult children are likely to be caregivers whether one owns long-term care insurance or not. Long-term care insurance is for caregivers. It gives them choices about the quality of care that can be afforded and whether they can be relieved of some of the responsibility for caregiving.
Many elderly spouses of those that can't take care of themselves become disabled themselves because of the emotional and psychological energy expended in caregiving. Adult children sometimes get caught in a conflict over eldercare and parenting growing children. Long-term care insurance provides income-tax-free money to hire trained individuals to care for loved ones. Ultimately, it allows the insured to die with dignity and peace.
Getting back to the wealthy that don't need to buy long-term care insurance, guess what? Many wealthy couples and individuals do. They understand leverage: paying smaller dollars now for larger dollars later, if needed. They also understand that in many situations, premiums for long-term care may be tax-deductible.
What about the middle class? They would have to design their coverage to help offset the cost of long-term care. No matter how much one spends, no long-term care insurance policy can guarantee to cover all possible long-term care expenses. But, the average claim is about 24- 26 months. Buying a long-term care policy with a pool of money sufficient to cover at least part of those costs would be prudent. Is buying a basic plan for long-term care that would pay only half of one's long-term care costs be a bad deal? I don't think anyone that's paying $400/day for facility care and being reimbursed for $200/day would find that of no value.
Some of us see it from the view of the caregiver/family, having been caregivers by default for a parent who did not have long term care insurance, or watched our "healthy" parent struggle to care for the sick one. Some of us have adult children urging us to get long term care insurance because they know that they would have to give up homes and jobs to come care for us.
Some of us see it from the view of the person needing the care. Time spent in a nursing home quickly reveals those who could have had a higher quality life living in their own home, with the resources that LTC insurance provides. There are the "rich" in the single room whose resources are dwindling with each passing year, and who may eventually not be able to sustain that luxury of a private room by having to go on Medicaid.
No matter what angle from which you view it, there are good reasons to get long term care insurance. There are also reasons not to get it, as Mr. Bridgers so eloquently stated about both sides.