Insurance May Ease the Burden Of Long-Term Care

Summary

The thought of spending their final days in a nursing home may scare many seniors. The thought of paying for it, though, may be even more frightening.

Neither health insurance nor the government may pay for long-term care unless patients have virtually no assets. Many seniors are forced to liquidate their assets just to pay for nursing home care. So it’s no wonder that long-term care insurance is increasing in popularity.

When considering insurance, plan ahead. The younger and healthier you are when you buy it, the less it may cost. To control costs, purchase a policy that is guaranteed renewable for life.

Read the policy carefully to determine whether there are exclusions. When considering the level of coverage needed, base your decision on the cost of care in your area. The average cost varies based on the level of care and geographic location. The policy should also compensate for inflation. A policy with unlimited days and unlimited stays may be expensive. Whether it is worth the cost depends on individual circumstances and should be considered carefully.

Also check what kind of care is covered. Some policies cover only facility care, some cover only home health care and some cover both. Ideally, the policy should cover custodial care in your home and care in an assisted living facility, an adult day care center and a nursing home. One way to reduce costs is to extend the period before benefits begin. Make certain you can afford to pay for care during the elimination period (waiting period).

Most insurers offer a waiver of premiums beginning 60 to 90 days after the policyholder receives the first benefit payment and some waive premiums as soon as benefits begin. It is best to seek assistance from your financial and legal advisers before purchasing coverage.

Larry King is a representative with the Raleigh Turner Agency, 4020 Westchase Blvd., Suite 450, Raleigh, North Carolina 27607 and can be reached at 919-546-0400 or lking@jhnetwork.com.

Insurance products offered through John Hancock Life Insurance Company, Boston, MA 02117 Registered Representative/Securities offered through Signator Investors, Inc., Member NASD, SIPC.

The information presented is for informational purposes only. It is not intended to replace the need for independent tax, accounting, or legal review. Individuals are advised to seek the counsel of such licensed professionals to review their personal situation. JHFNGA090731