Long Term Care Risk

“Most men’s consideration of long-term care consists of 30 seconds of denial”
Ed Harris, noted LTCi expert.

Long Term Care is often the least palatable to discuss and the most critical risk to plan for. Long-term care is the elephant in every retiree’s room, especially for those who still need to formulate a plan for providing care when the time comes.

Government and industry statistics say that over 60% – 70% of American retirees will require care for some period of time in their life. The average length of time for that care to be provided is 30-40 months. And the cost is greater or less, depending on where and how care is provided and how long we need care. One thing is for sure, the risk of needing care at some point in our lives is great and it will eventually take an emotional, as well as, a financial toll on the family and the estate.

Responsible preparation in advance cannot eliminate the issue, but it can reduce the emotional and physical strain on the other family members, and the financial strain that might be suffered by the surviving spouse as so much of his/her assets are decimated by unplanned-for nursing expenses.

Many people purchase traditional long-term care insurance, which provides substantial benefits to cover the cost of care in their home, assisted-living facility or nursing home. But too many do not, because of their financial situation, the perceived high cost or their ability to avoid the issue by denying that they will ever need it. However, when you consider that each month of benefits received will typically recover one to two years of cost, the economic value is substantial.

Still, many people with sizable assets object to the possibility or high probability that they will ever use the benefits. The apparent belief is that what they pay for in insurance will be lost.

New concept – pay for insurance and always receive a benefit!