God Created HMOs | Why Long Term Care

Long term care involves a wide variety of services for people with a prolonged physical illness, disability or cognitive impairment (such as Alzheimer's). Long term care is not one service, but many different services aimed at helping people with chronic conditions compensate for limitations in their ability to function independently. This care can be extremely expensive. That's why, for me, long term care has always been a vital quality of life issue, not only for the person who needs the care, but for their loved ones as well.

Why Long Term Care Insurance?

As we get older, long term care insurance may be the most essential – and most often overlooked - type of insurance protection that most of us will need. You may not know it, but more than half of all women and a third of all men who survive to age 65 are expected to spend some time in a nursing home during their lifetime. (source: Wall Street Journal, 2/21/01) And who is going to pay for that stay? Not your medical insurance. Not Medicaid, unless you're financially destitute. And Medicare will only pay a small fraction of the cost. It's you, my friend, paying out of your own pocket. Without long term care insurance, and with the average cost of a nursing home stay in the U.S. at $56,000 a year (source: Reuters, 12/13/00), your assets can be depleted very quickly.

According to the U.S. Department of Labor, the national average cost of part-time basic home care today ranges from $12,000 to $16,000 a year, and is estimated to increase to as much as $68,000 a year in thirty years. Nursing home care, which averages $56,000 a year, is expected to cost as much as $190,000 in thirty years.

That's why, for most people, having long term care insurance is very important to help protect their financial future.

Who Should Be Buying Long Term Care Insurance?

It is my belief that everyone age 59 through 84 should have long term care insurance, if it's appropriate. I also urge adult children to look into the feasibility of purchasing this type of insurance protection for their parents. It's good to remember that if there is a history of medical problems in your family, you might want to consider long term care insurance earlier than age 59, while your health is not an issue. In addition, remember that premiums are based, among other things, on your age at the time of purchase. Therefore, if you wait, your premium rates could increase because you have gotten older. And, should you have a health issue, you may even become ineligible to apply.