5 Common Myths

5 Uncertainties to Ponder about Long-Term Care


1) I don’t want to think or talk about the possibility of LTC. The subject is too depressing.

It IS a difficult subject.  However, it may be a real possibility that you could outlive your money, lose all your assets that you’ve worked so hard to establish, and burden your children.  Those of us who've already addressed this challenge with our parents, are well aware of the importance of planning.

2) I don’t want to go into a nursing home.

Long-Term Care Insurance was created for the 86% of individuals who prefer to stay at home. Long-term care can be provided in many settings, from your own home, to assisted living facilities and other places such as continuing care retirement communities, and adult day health programs.

3) I am too young for Long Term Care Insurance

According to industry statistics, 59 is the median age of policyholders while still healthy. Premiums increase substantially as you age and if you develop certain medical conditions, you may be denied benefits due to pre-existing condition exclusions, or you might not be able to buy insurance at all.

4) I really don’t need Long Term Care Insurance. I can self-fund lifecare.

You should carefully analyze whether you have sufficient home equity combined with savings and investments dedicated to covering long-term care expenses. Long-term care services are generally not covered by your regular health insurance, Medicare or Medicare supplemental insurance. How much of the daily, monthly, or yearly costs are you able to manage and for how long?  It is projected to cost over $637.26/day and $232,601.45/yr by 2036.  Can you afford that?

5) If I never need long-term care, I’m wasting money on years of premiums.

Newer hybrid policies of life insurance/annuity-long term care combinations provide a pool of benefits if needed, and if not used, will be preserved for the beneficiaries. State partnership programs can shield assets. 1035 exchanges and a variety of other solutions to address long term care needs can give tax advantages and flexibility. Discounts for joint policies are available.