Baby Boomers Should Consider Long Term Care Insurance

by: Brandon Thomson

Long term care insurance is essential to planning for future health care for anyone 45 years old and older. Many Americans don't know why.

While it is common knowledge that the cost of health care is constantly on the rise, the costs of one sector of health care should be of special interest to baby boomers as they approach their golden years. That sector is long term health care. The cost of long term health care may not yet appear on the radar screens of those who will likely bear the burden of financing long term care for their parents in the coming years and for themselves just a couple of short decades down the road. We think that health problems happen to other people and that we could afford long term health care if we ever needed it, but are we lying to ourselves?

According to the Underwriter's Long Term Care Council, we are. Their recent study states that there is a 1 in 2 chance that you will require some sort of long term care assistance in your lifetimeⁱ. Another study by the American Society of Aging informs us that 70% of seniors over the age of 65 will require long term care assistanceⁱⁱ. Such startling statistics may forewarn us of the great likelihood that we will one day need long term care, but how do we arm ourselves against this impending threat before it strikes? Perhaps the most efficient way is long term care insurance.

Many people fail to realize how much long term health care can cost, particularly if you do not have long term care insurance to offset these expenses. Health insurance is inadequate when faced with an injury or illness that has long lasting effects. It only covers immediate medical expenses, but long term care insurance is designed specifically to address the problems of the aging and those who become disabled. Individuals who suffer from debilitating injury or illnesses may require long term care in a nursing home, physical therapy for extended periods, or home care for several months - or the rest of their lives. Without long term care insurance, the price tag for these services can be overwhelming.

In a survey conducted by CNN last year, the average nursing home stay was estimated to have a price of $57,000 and almost $166,000 if you are unfortunate enough to live in Alaskaⁱⁱⁱ. Prices are higher when specialist care is required, or when the patient wants a private room and other amenities. Such expenses are enough to deplete an individual's entire life savings over a short period of time.

If you are younger than 45, you may want to consider purchasing long term care insurance for your loved ones. Many people fail to realize that they are not qualified or equipped to provide adequate care resources or funds to care for their parents. Often times, the help of an experienced professional is needed, and specialized care tends to be expensive. A long term care insurance plan will enable loved ones to have the best care possible while staying within a budget that you can afford.

Individuals 45 and older should get long term care insurance for themselves. The earlier you purchase long term care insurance, the cheaper your policy will be for the duration of your coverage. Even if you are fortunate enough to self-ensure, affording to cover all the costs of long term health care with your savings, you can protect your assets in order to leave them behind for your loved ones and favorite charities. A long term care insurance policy can help ensure that your assets won't be diminished by costs associated with long term health care, such as expensive nursing homes and caregivers.

Just two decades ago, the concept of long term care insurance was practically unheard of. Today, most life and health insurance agents are willing and able to sell you a long term care insurance policy, but should you go to your insurance agent to get a long term care insurance policy? The answer is most often "No." Frequently, these agents are not well versed in long term care insurance products. They may not understand the product well enough to cater to your individual needs. Shopping for long term care insurance online enables you to research various agents in the long term care industry. From there, you will be able to locate leading agents who concentrate solely on long term care insurance and excel at it. These agents will take your unique situation into consideration, and find the policy that meets your specific needs, rather than selling you a "one-size-fits-all" policy.

Today's technology makes it convenient to shop and buy insurance policies online. Shopping online reduces the stress caused by "hard-sell" agents who want you to buy at any cost. You will also be able to research your product thoroughly. The better understanding you have, the more likely you are to make an informed decision when selecting your agent and your policy.