What Women Must Know About Long term Care Insurance

In today’s fast—paced, hustled world, it is easy for people to get caught up in the daily grind of constantly being on the move. We all seem to step on the gas pedal without ever looking back — but what if people did?

(EMAILWIRE.COM, June 18, 2008 ) Women and Long term Care Insurance
By Linda Horn. CEO of Capital Concepts

In today’s fast—paced, hustled world, it is easy for people to get caught up in the daily grind of constantly being on the move. We all seem to step on the gas pedal without ever looking back — but what if people did? Would they have done anything differently? Unfortunately, it is sometimes too late to slam on the brakes and take a different route in life. Time goes by quicker than ever before, and let’s be honest— no one is really getting younger.

We all need to let off the gas pedal at some point and have a reality check concerning the subject of aging — especially women. As the primary care givers of family members, women are used to looking out for others. In the end, though, who will look out for them?

This question is especially important considering the fact that women are living longer than men by seven to eight years. With more females outliving males, it is clear that women will most likely need more medical attention than men. According to The Heller School of Social Policy and Management, it is estimated that over 50 percent of women, as opposed to 33 percent of men, who are 65 years or older will need nursing home care before they die.

While there is not much people can do about getting old, they can prepare for the journey as much as possible. They can consider their options with long—term care, and figure out a plan that works best for their situation.

When people consider having their children pay for their care, it can be an extremely overwhelming situation. These children will probably be both emotionally and physically drained. However, the government is facing a burden of its own — the large population of the aging baby boomers. According to the U.S. Census Bureau, there were 78.2 million baby boomers as of July 2005. The government simply does not have the money to take care of this large surge. In Ohio, long—term care costs between $65 to $85 thousand dollars a year, depending on the facility.

After paying as much money as they can for their care, what will people do when they run out of money? Soon enough, all of us may be on our own to pay for our care.

There are many factors to consider when considering purchasing long—term care insurance, with two main ones being age and premium prices. Generally, it is best to purchase policies sooner rather than later; the younger people are when purchasing it, the more favorable rate they will receive. Also, if these people change their coverage, they will still pay the same price. As far as premium prices, it is important to be aware of the specific terms in the policies; for example, if someone is unable to leave their house, it is pertinent that the policy includes home car. People need to know exactly what they are paying for — what does the policy specifically cover?

While searching for different companies to insure you, keep in mind that top—rated companies address five daily conditional needs —bathing, dressing, taking medication, toileting, and transferring. Even if you only have a problem with two of these conditions, you can qualify to have someone in your house to help you.

The second factor to consider is the premium prices. The price is set by the daily amount you feel you will need and for how long you feel you may need the care. You can also self insure for 30, 60 90 plus days. I usually recommend you pay your own way for the first 90 days to save on premiums.

Regarding how long to be covered, that involves personal discussions. “Life time” would take care of you no matter what circumstance you encounter. Generally, most people stay in a facility for three or four years. If you are older and premiums are a concern, then I may suggest applying for 6 year coverage. However, if you are in your 50’s or 60’s, you may consider life-time coverage just in case you were to come up against a very long term situation. I bought my policy at age 52, so life time coverage made good sense to me.

It is important to keep in mind that we are not completely in control of premium prices with inflation. I am now in my early 60’s but will continue to increase my coverage to protect for inflation while preserving rights to premiums at the price of a 52 year old. For example, if in 20 years I have increased my daily benefit, the insurance company must pay by three times; thus, my premium will be exactly three times what I am currently paying. I also may choose to increase my coverage and thus my premium. I can decline to do so and my premium will stay exactly the same year after year; however, when I need help, inflation will most certainly be a problem for me.

Long—term care insurance may be expensive, but it can be a wise investment if thoroughly considered. With tax deductions for Federal and most states, long—term care could go a long way with medical needs. The final years of a great woman’s life should not need to boil down to money — we deserve more than that.