Prepare for the unthinkable with long-term care

Invincible. That’s how most people feel when it comes to their overall wellbeing. After all, millions of Americans admit to being overworked and overtired, yet they still tread on.

Unfortunately, no one is invincible. Everyone is susceptible to time catching up with them – and then having to pay the excruciatingly expensive costs of health care that come with getting old. That’s why it’s imperative that you protect your health – and finances – with long-term care insurance.

According to the Health Insurance Association of America, approximately 50% of all people 65 and older will spend some time in a nursing home during their lifetime – at an average annual cost of $70,000 per person. (average annual cost from: Genworth Financial 2006 Cost of Care Survey, released March 27, 2006) Without proper planning, these expenses can drain – and sometimes even decimate – your entire life savings, potentially putting you and your family members in perilous debt. That’s where long-term care insurance can help. Here are a few important facts you should know before you buy:

First, purchase your policy early. Although most people view long-term care as something for older people, long-term care is not something reserved exclusively for the elderly. In fact, 40% of people who receive long-term care are pre-retirement age adults who require it because of accidents, extended illnesses, or even the early onset of Parkinson’s or Alzheimer’s disease. That’s why the ideal time to buy insurance against the costs is when you’re in your early 50s and in good health. Subsequently, your premium costs will be lower and you’re less likely to have a pre-existing condition that disqualifies you.

Second, maintain your health. Once you’ve obtained an annual premium, it can’t be raised if your health changes. However, insurance companies can ask state regulators to raise premiums for an entire age group, depending upon claims experience. So, if your blood pressure and weight have gone up in the past and you’ve subsequently filed claims for medications, your premiums are bound to go up. Stay healthy and you’ll be less likely to experience a rate increase.

Next, consider the length of coverage. Since the average stay in a nursing home is 2.5 years, most people decide to limit coverage length to limit their costs. But if you’re purchasing a policy in your mid-50s and your premiums are fairly low, lifetime coverage may be worth the extra investment.

Finally, remember your parents. While long-term care insurance should probably be a part of your financial plan now, it is also something you can purchase for your now-healthy parents, who may become dependent on extended health care you can’t provide.

Although everyone hopes that long-term care insurance will never be needed, you should be prepared. A comprehensive plan can provide the comfort both you and your family may need during an emotionally and financially trying time. By giving you the choice of where you or a loved one receives care, the funds to help pay for it and the knowledge that the financial burden from it can be eased, long-term care insurance will not only help ensure your quality of care, but the quality of your life, as well.

For more information about a long-term care insurance policy for you or someone dear to you, please contact me today.