Long Term care insurance: is it worth it?
Terri Cullen wrote an interesting article today regarding long term care (ltc) insurance in the Wall Street Journal titled A Policy to Live By. We’re glad that she is bringing ltc insurance into the spotlight… there are so many people who don’t even know what ltc insurance is -- much less, how they can benefit by it.
She gives very good (personal) examples of whether ltc insurance is right for herself and her family. According to the president of a long-term-care consulting firm Ms. Cullen consulted, those who have less than $2.5M in liquid assets should definitely consider ltc insurance (which basically means the majority of the US population). LTC insurance may not be right for Ms. Cullen and her family as she clearly outlines her reasoning.
However, you should not compare your situation with hers.
We believe boomers will need ltc insurance—more so than their parents ever did. In Ms. Cullen’s article, she writes how some of her family members are not eligible for ltc insurance-- but that's ok because Medicare would cover some costs and, if needed, she and her husband would help with the rest. This may be a very optimistic and hopeful. Medicare does cover some costs – for now-- if you meet certain requirements. However, considering our government is in tremendous debt and healthcare does not seem to be a priority in their agenda, we would not be surprised if Medicare funding is cut in the future, thus leaving those depending on Medicare/Medicaid aid for long term care in a lurch.
In addition, the children of boomers will probably need long term care even more--- if their parent’s don’t qualify for ltc insurance, they will be the ones who will be helping pay the bills. Their financial resources will be tied up helping their parents/parents-in-law (while paying for their children’s rising education costs) and they will not have enough to pay for their own long term care.
Ltc insurance is more of a safety net. You really need to do your research and find the best insurance company that is flexible. Weigh the pros and cons --- but take into account that certain ltc insurances pay you (not the assisted living facility) directly when you need it so that you can decide how to best allocate the resources. (Check out Unum Long Term Care insurance--- it is one of the top insurances available).
Consider long term care insurance very carefully. You may find out it is perfect for you.
She gives very good (personal) examples of whether ltc insurance is right for herself and her family. According to the president of a long-term-care consulting firm Ms. Cullen consulted, those who have less than $2.5M in liquid assets should definitely consider ltc insurance (which basically means the majority of the US population). LTC insurance may not be right for Ms. Cullen and her family as she clearly outlines her reasoning.
However, you should not compare your situation with hers.
We believe boomers will need ltc insurance—more so than their parents ever did. In Ms. Cullen’s article, she writes how some of her family members are not eligible for ltc insurance-- but that's ok because Medicare would cover some costs and, if needed, she and her husband would help with the rest. This may be a very optimistic and hopeful. Medicare does cover some costs – for now-- if you meet certain requirements. However, considering our government is in tremendous debt and healthcare does not seem to be a priority in their agenda, we would not be surprised if Medicare funding is cut in the future, thus leaving those depending on Medicare/Medicaid aid for long term care in a lurch.
In addition, the children of boomers will probably need long term care even more--- if their parent’s don’t qualify for ltc insurance, they will be the ones who will be helping pay the bills. Their financial resources will be tied up helping their parents/parents-in-law (while paying for their children’s rising education costs) and they will not have enough to pay for their own long term care.
Ltc insurance is more of a safety net. You really need to do your research and find the best insurance company that is flexible. Weigh the pros and cons --- but take into account that certain ltc insurances pay you (not the assisted living facility) directly when you need it so that you can decide how to best allocate the resources. (Check out Unum Long Term Care insurance--- it is one of the top insurances available).
Consider long term care insurance very carefully. You may find out it is perfect for you.
posted by CareTALKGals(tm) at 10/12/2006 11:19:00 PM
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