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| LONG TERM CARE: SEVEN OF THE MOST IMPORTANT QUESTIONS YOU COULD EVER ASK YOURSELF |
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Jamila writes, "...You may be thinking, “Where is the question about whether or not I can afford long-term care insurance?” You should be asking..."
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WHO NEEDS LONG-TERM CARE INSURANCE?
SEVEN QUESTIONS TO HELP DETERMINE IF YOU DO?
In most people’s minds, they are still in high school. But every now and then, a stray white hair or wrinkle will catch their eye, and they wince. Retirement is creeping up on a majority of the Baby Boom generation, and soon, advanced age will prevail, and the majority may require assistance with their day–to-day routine.
You may not have realized that assistance with the day-to-day activities of daily living, no matter if it is given in your own home or in a nursing home, constitutes long-term care. So how can we prepare for this eventuality? Long-term care insurance may be an answer. Let’s see if this type of insurance is right for you:
1)Do you want to pass down your wealth or property to your children?
Nursing home care costs at least $192 a day (in 2006 dollars), according to a 2006 Older Women’s League (OWL) report on women and long-term care. If you do the math, that could mean close to $70000 per year. That kind of cost can drain your financial reserves or retirement nest egg quickly, leaving you with no “legacy” to pass on to those whom you care about.
2) Do you intend to qualify for state aid?
Most people are misinformed about state programs. Medicare covers only a limited amount of long-term care services, while Medicaid covers some long-term care services – primarily care in a nursing home – for people who have limited income and assets.
3) How long do you think you will you live?
How long did your grandparents live? And their grandparents? Advances in medicine and the knowledge of human health have increased the average lifespan by a few decades. So chances are, you will live longer than your grandparents. But as you age, the chances that you may need long-term care increase.
4) Will your family members be able to care for you, as you age?
Many women are sandwiched between caring for children and parents. In fact, the changed structure of the family has resulted in most women working to help support the family, and someone with enough time to care for another adult is rare. Additionally, family members are more geographically dispersed. What options may you have in your future?
5) Are you a woman?
Women generally outlive their spouses, lessening the likelihood that they will be cared for by their spouse. In fact, women make up 67 percent of all nursing home residents, according to the 2006 OWL report. Additionally, women may be less prepared financially to pay for long-term care services, if they don’t have adequate pension or other financial plans in place for themselves.
6) When will you want to retire?
Baby Boomers are working longer and retiring at an older age. But just because you plan to retire at a later age does not mean you should not consider long-term care insurance. Conventional wisdom recommended looking at purchasing long-term care insurance between ages 60 and 65. Experts are now recommending that people as young as 50-years-old or younger begin the process. Remember, the older you get, the more expensive the coverage is and the likelihood of health complications increases.
7) How healthy are you?
You can become injured or ill enough at any age to need long-term care. If you wait until you are older and begin developing the health conditions that normally accompany aging, the coverage will be more expensive or may be difficult to obtain.
You may be thinking, “Where is the question about whether or not I can afford long-term care insurance?” You should be asking, “Can I afford not to have long-term care insurance?” Today’s long-term care insurance products include options and choices, such as elimination benefit periods and daily benefits amount, that can help make your coverage more affordable. You may want to start investigating those options now. Contact your insurance agent to get more information on the types of policies available.
Jamila Haseeb is with MassMutual’s FMC Financial Group in Newport Beach, CA. You can reach Jamila via e-mail at jhaseeb@finsvcs.com or by calling (949) 225-9345.
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Posted on Jan 28, 2008 13:23pm.
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