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NOT YOUR GRANDFATHER'S INSURANCE ANYMORE
By Dan Weedin, CIC
I am concerned that when people in their 40s and 50s think of long-term care insurance, they think it would benefit only their parents and grandparents. After all, isn’t long-term care for old folks going into nursing homes? Well, yes and no. A long-term care policy certainly can provide coverage to the elderly who have to move into a nursing home or assisted-living facility. However, as the name of the insurance implies, it is truly for anyone who needs help with the activities of daily living over a long period of time.
Remember Christopher Reeve? You know, he played Superman in the movies. Well, Christopher Reeve was 42 years old when he suffered a horse-riding accident in 1995. He was paralyzed for life and died nine years later. Was he in need of long-term care? Absolutely. An accident like that, whether caused by a recreational activity, a car accident, or an incident in the workplace, can thrust a young person into an assisted-living situation in no time flat.
What about a stroke? Do you think that is reserved only for the elderly, too? Tedy Bruschi, an all-star linebacker for the New England Patriots, suffered a mild stroke in 2005 at the age of 32. Yes, he did come back to play, but it is clear that a stroke can happen at any age and recovery will be different for everyone. If Bruschi’s stroke had been more serious, what kind of care would he have needed?
These two examples illustrate how important it is to at least consider long-term care insurance, especially if you are younger than 55. As with life insurance, the younger you are when you buy this coverage, the less expensive it will be, with the savings usually going on throughout the life of the policy. The base rates climb with age, because the primary end user is still an elderly person who needs assisted living. But you might be surprised to find out how inexpensive this coverage can be if you buy it early in middle age.
Keep these thoughts in mind as you determine whether long-term care insurance is right for you now:
- Regardless of your age, if you become unable to properly care for yourself, can you afford to pay for your care out of pocket? Nursing home care runs to thousands of dollars per month and will only get more expensive, while the annual premium for long-term care insurance is far less than the cost of just one month in a nursing home.
- By the way, if you tell me your spouse is going to take care of you 24/7, ask yourself who is going to make the money for your family.
- The elderly aren’t the only ones who might need long-term care. The need for long-term care is just a tragic accident away for anyone.
- Are you planning to dig in your heels and stay in your own home no matter what? Many long-term care policies also provide a benefit for home care.
- Do you have children? Don’t burden them with the obligation of being your long-term care “insurance.” They have lives of their own to live.
- What if you become uninsurable between now and the time you think you should consider long-term care insurance? How does that happen? Well, you might become disabled or develop a disease like multiple sclerosis, ALS (Lou Gehrig’s disease), diabetes, or high blood pressure. Unfortunately, any of these issues would make it virtually impossible to purchase insurance on your life or health.
When you consider your insurance portfolio, it is vital to include long-term care along with life, disability, auto, and home insurances. These are your basic insurance requirements. Planning on taking your chances? If you think you’re Superman (remember Reeve?), you might find that long-term care insurance can’t be purchased at any price when you need it most. Do some research, contact a qualified agent who sells financially sound long-term care policies, and consider the importance of this coverage in the overall scheme of your life. Like most insurance, you hope you’ll never need it. But if you do, you’ll be glad you made the decision to buy – and so will your family.
Dan Weedin, CIC, is founder and president of Toro Insurance Consultants, Inc. He holds the designation of Certified Insurance Counselor (CIC) from the Society of CIC. He can be reached at (360) 697-1058 or dan@toroinsurance.com.
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