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As Baby Boomers get older and ponder the day when they will need
assisted living care or nursing home care, many consider purchasing
long term care insurance. Three reasons people buy long term
care coverage relate to financial and family situations.
Many people buy long term care insurance to take the burden of
care off the family. A long term care insurance policy can increase
health-care choices too. Finally, long term care coverage can take
some of the worry out of dealing with financial issues as you age.
Reduce the load on family.
Older people get much help from unpaid
caregivers -- spouses, children, siblings and friends – to
get through life as their abilities diminish. Although such care
is freely and lovingly given, an undeniable level of stress is
placed upon the caregiver. The situation is compounded even further
when reduced mobility or chronic illness causes the need for nursing-type
services, such as help with bathing or eating.
Home health care, when covered by long term care insurance, can
reduce the burden on volunteer caregivers, allowing people to spend
more stress-free time with their loved ones.
Increase care options.
Many people simply desire to stay in their
own homes as they age, comforted by familiar surroundings. But
home modifications and visiting caregivers may be necessary. A
well-designed long term care policy can provide more care options
and better coverage than otherwise available.
For people without long term care insurance, choices may be more
limited, especially as costs rise. On a fixed income with an average
amount of retirement savings, a person might not be able to enact
those choices.
If an uninsured person can’t afford care, often the only
option is Medicaid, the federal program that was created to provide
a safety net for the lowest-income Americans. To qualify for Medicaid
benefits, a person needs to pay out much of their own assets first
and reach federal “poverty level” qualifications. Once
in the program, a person’s choices are limited to what Medicaid
will allow and pay for. Many nursing homes, for instance, have
a limited quota of Medicaid rooms.
A third level of choice comes in quality of care: a long term
care policy may allow more choices of providers for home nursing,
therapies and personal care.
Preserve financial independence and assets.
For a person who does
not want to enter the social welfare program that is Medicaid and
wants to preserve their assets to create a better life for their
children, buying a policy may be the best financial decision they
can make.
To get the best rates and ensure eligibility, people are urged
to consider long term care insurance well before they reach retirement
age.
Demographic trends show that America is entering an era of increased
demand for long term care as the Baby Boomer generation reaches
senior citizen status, and the government’s shrinking resources
may not meet the challenge. Faced with rising costs, more demand
for services and an uncertain federal safety net, a long term care
insurance policy helps people ensure financial security.
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