Long Term Care

Long-term care is the assistance provided when a person is unable to provide for himself or herself as the result of disability or a prolonged illness. It ranges from providing personal care at home, such bathing and dressing, to skilled nursing services in a nursing home.

Long-term care is offered through home care agencies, senior centers, adult day care centers, traditional nursing homes, and retirement communities that provide on going care.

Who Should Buy It?
A long-term care insurance is not for everyone, but does make sense as an affordable and worthwhile form of insurance for some. It depends on y our age, health status, overall retirement objectives, income and wealth, and should not cause financial hardship or force you to forego other financial needs. Whether long-term care insurance is appropriate really requires a full financial analysis. These policies are only for people with significant assets they want to preserve for family members, to assure independence and not burden families with nursing home bills. Never buy a policy if:

• Paying the premiums will be a burden
• If the only source of income is a minimum Social Security benefit or Supplemental Security Income (SSI).
• If paying utilities, food or medicine stretches a budget.
• If you have Alzheimer's or Parkinson's disease. No company will want to sell you a policy since they will face losses.

Although the need for long-term can arise gradually as a person ages and needs more and more assistance with activities of daily living, for most a stroke or a heart attack will be the precipitating need. Those with acute illnesses may need nursing home care for a matter of months, while others may need care for years.

Common Exclusions
Do not expect any carrier to pay for benefits for:

• Mental disease and nervous disorders, except some do cover Alzheimer's.
• Addictions to drugs and alcohol
• Injuries and illnesses caused by war.
• Treatment paid by the government.
• Injuries that are self-inflicted, such as in suicide attempts.

Odds of Needing Long-Term Care
Studies have shown that 43% of those who turned 65 in 1990 will enter a nursing home at some time during their life. Women outnumber men in nursing homes and 13 percent of women were projected to spend five or more years in a nursing home compared to 4% of men.

After assessing the odds, consumers must stringently analyze the reasons for a policy and the ability to pay for it. It makes no sense to buy a policy unless it can be paid every year until death or entrance into the nursing home. Far too many policies are cancelled by policyholders on fixed income as they grow older and premiums increase accordingly.