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Long Term Care Insurance

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 as 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 ongoing care.

A long-term care insurance policy is not for everyone , but does make sense as an affordable and worthwhile form of insurance for some. It depends on your 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 members 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 care 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 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

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Information is provided for review and consideration only. Please consult legal and tax advisors for practical advice pertaining to your business and personal situations.

This page was last updated on Wednesday, January 02, 2008 11:22 AM