Three Reasons to Consider Long Term Care Insurance

By Sean Denny, www.long-term-care-insurance-planners.com

As Baby Boomers get older and ponder the day when they will need assisted living care or nursing home care, many consider purchasing long term care insurance. Three reasons people buy long term care coverage relate to financial and family situations.

Many people buy long term care insurance to take the burden of care off the family. A long term care insurance policy can increase health-care choices too. Finally, long term care coverage can take some of the worry out of dealing with financial issues as you age.

Reduce the load on family.
Older people get much help from unpaid caregivers -- spouses, children, siblings and friends – to get through life as their abilities diminish. Although such care is freely and lovingly given, an undeniable level of stress is placed upon the caregiver. The situation is compounded even further when reduced mobility or chronic illness causes the need for nursing-type services, such as help with bathing or eating.

Home health care, when covered by long term care insurance, can reduce the burden on volunteer caregivers, allowing people to spend more stress-free time with their loved ones.

Increase care options.
Many people simply desire to stay in their own homes as they age, comforted by familiar surroundings. But home modifications and visiting caregivers may be necessary. A well-designed long term care policy can provide more care options and better coverage than otherwise available.

For people without long term care insurance, choices may be more limited, especially as costs rise. On a fixed income with an average amount of retirement savings, a person might not be able to enact those choices.

If an uninsured person can’t afford care, often the only option is Medicaid, the federal program that was created to provide a safety net for the lowest-income Americans. To qualify for Medicaid benefits, a person needs to pay out much of their own assets first and reach federal “poverty level” qualifications. Once in the program, a person’s choices are limited to what Medicaid will allow and pay for. Many nursing homes, for instance, have a limited quota of Medicaid rooms.

A third level of choice comes in quality of care: a long term care policy may allow more choices of providers for home nursing, therapies and personal care.

Preserve financial independence and assets.
For a person who does not want to enter the social welfare program that is Medicaid and wants to preserve their assets to create a better life for their children, buying a policy may be the best financial decision they can make.

To get the best rates and ensure eligibility, people are urged to consider long term care insurance well before they reach retirement age.

Demographic trends show that America is entering an era of increased demand for long term care as the Baby Boomer generation reaches senior citizen status, and the government’s shrinking resources may not meet the challenge. Faced with rising costs, more demand for services and an uncertain federal safety net, a long term care insurance policy helps people ensure financial security.

Copyright 2005 www.long-term-care-insurance-planners.com.
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