Risks are part of life, but your long-term security doesn’t have to be one of them…

Life is often defined by how we deal with unexpected events. Unfortunately, the need for long-term care is one of those events we never expect to happen to us.

Studies show that 50% of all Americans will need long-term care in their lifetimes. Of those who reach 65, that number rises to 60%. And of those currently receiving long-term care, 40% are under 65.

With long-term care insurance, you can have peace of mind, knowing that you’ll have the best possible care, have the loving support and help of your family without being a burden on them, and be able to meet the considerable expenses of long-term care without destroying the financial well-being of you and your family.

1. I don't need long-term care insurance because Medicare or my regular health insurance or my family will take care of me.
2. I don't need long-term care insurance because I plan to qualify for Medicaid.
3. I don't want to spend money on something I might never use.
4. If I buy long-term care insurance, I'll have to pay premiums the rest of my life.
5. The best time to get long-term care insurance is when I need it. Not before.
6. Over a hundred insurance companies sell long-term care insurance, so the best way to buy this insurance is to shop for the best deal I can find.
7. Working with an independent insurance professional costs more because she has to add in her fee. I'll get a better rate by finding a company on the Internet and going to them directly.

 

 

 

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1. MYTH: I don't need long-term care insurance because Medicare or my regular health insurance or my family will take care of me.
FACT: Having long-term care insurance guarantees you’ll get the care you need where you want it, whether that’s at home, an assisted living facility or a nursing home. If you’re not sure, a trained care coordinator can help you figure it out. Medicare, when you’re 65, will take care of most of your regular medical expenses. Medicare makes no guarantees on providing a range of long-term care options, and has complicated restrictions on what they’ll cover. On paper, Medicare covers up to 100 days of care; in reality, it’s usually less than one month.

If you’re under 65 and have health insurance yourself or through your employer, your policy has an exclusion for long-term care. Check the fine print – it will have an exclusion for long-term or custodial care. The policy may pay for a short period of skilled care, but not for long.

If you’re thinking, “well, the government is going to have to do something as the baby boomers age, there are so many of them” – think again. The federal government has actually introduced a long-term care insurance plan available to their employees and family members (not subsidized by the government). That’s a strong statement that the government wants people to take individual responsibility for this problem as the government can’t afford to pay for all of us.

If you expect your family to care for you, you’re right, as families almost always try to do the best they can for each other. They’ll always help you out. But taking care of someone who needs round-the-clock attention is a huge drain emotionally and financially. If you’d like them to help you in a way that will allow them to continue to lead their lives, consider adding insurance to your planning.

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2. MYTH: I don't need long-term care insurance because I plan to qualify for Medicaid.
FACT: Long-term care insurance allows you and your family to decide what kind of care is best for you. On Medicaid, the government makes that choice. You’ll be sent to a nursing home that will accept you as a Medicaid patient, which might not be your first choice and could be far away from home. And as states continue to run low on money, they’re restricting Medicaid more and more. Usually, home care or assisted living facilities are not options on Medicaid, but these are the options my clients tell me they want. Long-term care insurance is your assurance that you have a wide range of care choices.

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3. MYTH: I don't want to spend money on something I might never use.
FACT: That’s understandable – just like you don’t really want to pay car insurance for an accident that might never happen, or homeowners insurance for the unlikely destruction of your house.

In New Hampshire, Maine and Massachusetts, your total premium for a long-term care insurance policy is a tiny fraction of the price you’d pay for just one year of long-term care out-of-pocket. But if you want, you can choose a policy that would return the paid premiums to your beneficiary if you never use the insurance. There are other choices too, such as life insurance/long-term care combinations – you’ll get your money back one way or the other.

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4. MYTH: If I buy long-term care insurance, I'll have to pay premiums the rest of my life.
FACT: Only if you choose. If you’re young enough, you can choose a policy that requires premium payments for just 10 or 20 years or until you’re 65. Often people in their 40s and 50s decide to do this. There are also tax breaks on long-term care premiums, which can help. Some people purchase an annuity that will pay their premium each year, so they don’t have to think about it once the annuity is set up.

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5. MYTH: The best time to get long-term care insurance is when I need it. Not before.
FACT: You’re absolutely right! But you won’t qualify for it then. That would be like applying for flood insurance when the water’s at the door. So if you don’t have a crystal ball that’s any better than mine, you need to consider this and apply when you’re in the best possible health – hopefully many years before you need it.

Sadly, way too many people do wait until it’s too late because they spend their lives hoping they’ll never need long-term care. We have to tell them the sad news that there’s little we can do once they’re diagnosed with a serious problem, even it they don’t yet need long-term care.

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6. MYTH: Over a hundred insurance companies sell long-term care insurance, so the best way to buy this insurance is to shop for the best deal I can find.
FACT: Everybody loves a bargain, and true, many companies offer long-term care insurance. But there are few good ones. The companies we deal with are all highly-rated financially, and are leaders in long-term care insurance. They work hard to keep premiums stable for existing policyholders. These are very important considerations in choosing a long-term care insurance provider; they are also the most difficult for the casual insurance shopper to determine. Just shopping for the lowest premium can be risky in this business. It’s also hard to compare policies on an apples-to-apples basis so the lowest premium may just be buying you lower coverage or fewer benefits.

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7. MYTH: Working with an independent insurance professional costs more because she has to add in her fee. I'll get a better rate by finding a company on the Internet and going to them directly.
FACT: Working with an independent insurance professional costs exactly the same as going directly to a company because state laws regulate insurance policy prices. Discounts are not allowed, except for groups, so rates are NOT less on the Internet. The advantage of working with an independent professional, like me, is the service, knowledge, and objective viewpoint. I can help you compare different companies and plans and work with you to find an affordable and personalized solution.

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