Isn't Long Term Care Insurance for the Elderly?

Isn't Long Term Care Insurance for the elderly? The second myth of Long Term Care is that only seniors need worry about it. Although it is true that the risk of needing Long Term Care increases as one advances in age, AARP's National Alliance for Caregiving study in April of 2004 revealed that of those receiving Long Term Care in the United States 16% were between ages 50 & 64 years and 22% were between ages 18 & 49 years. This means that approximately 1 out of every 3 persons needing Long Term Care in the U.S. are under 65 years old.

Although Long Term Care is often associated with diseases such as senile dementia, Alzheimer's, or Parkinson's, it is frequently needed during recovery from strokes or injuries received from automobile wrecks, which are just as likely to occur to the young or the old.

Consider that the overall odds of you needing to use the insurance on your home are about 1 in 1,200; and yet nearly every home-owner has this insurance. However, the overall odds of you needing Long Term Care at any age are approximately 1 in 2; and the risk is certainly no less expensive than the loss of your home. According to the American Council of Life Insurers "Long Term Care Insurance, An Affordable Choice", nearly 50% of people entering a nursing home will deplete their personal savings and assets to pay for their care within three months!

Aside from having coverage whenever you need it, purchasing Long Term Care Insurance sooner rather than later has another distinct advantage: you are more likely to pass the medical underwriting. Like life insurance, applying for Long Term Care coverage generally includes answering questions about your health as well as the insurance company checking your medical records. By the time you are 65 years or older, qualifying medically can be a serious challenge to your securing a policy.

Even if you are relying on good health while you wait, you run the risk of something happening to your health and becoming uninsurable. The bottom line is if you cannot pass medical underwriting, then you will not be insured no matter how much you are willing to pay on your premiums.

A final advantage to buying Long Term Care Insurance as soon as possible is that you will save money. Once again similar to life insurance, Long Term Care policies are less expensive the younger you are and do not increase their premiums as you age.

For example, let's examine two individuals aged 50 & 30 obtaining Long Term Care Insurance. Assuming they both purchase the same amount of coverage the 50 year-old would pay an annual premium of $2,015, but the 30 year-old would pay only $550 per year. Now let's assume that both individuals use their insurance when they turn 80 years old. Although the 30 year-old would have paid premiums for an extra 20 years, he or she would have paid a total of $27,300 as compared to the 50 year-old's total of $60,450.

Whether it is the risk of not having coverage when you need it, becoming uninsurable due to changes in health, or paying more expensive premiums for the same level of coverage, when it comes to Long Term Care Insurance there is a high cost for waiting.

Is Your Family Protected?

Is your family protected? The first myth of Long Term Care Insurance is that it is for you. Wrong! Long Term Care Insurance, much like Life Insurance, is for your loved-ones.

Let's face it: if you have any family or friends at all, then you will receive Long Term Care when you need it. The question is how much will it cost your family or friends to provide Long Term Care for you?

According to a National Center of Health Statistics study in 2007, only 15% of Long Term Care is nursing home care and only 8% is provided in an assisted living setting. This means that approximately 77% of Long Term Care is either home health care or adult day care where the primary caregiver is usually a family member.

This situation places heavy financial and emotional burdens on today's families because many are two-income families, are geographically separated from those needing care, and may be needing to help multiple generations at the same time.

Traditionally caregivers have been female, but today many work outside the home. The price of helping you could easily be their loss of income. According to one study, employees whose family members have Long Term Care Insurance are twice as likely to stay on the job.

In today's society, children can live hundreds or even thousands of miles away -- making it impossible for them to help. Also, a study on caregivers' responsibilities revealed that approximately 23% provide Long Term Care for two persons and 8% provide Long Term Care for three or more persons.

A couple of final considerations are that rarely do family or friends have professional medical training and that your Long Term Care is an imposition on your loved-ones that robs you of your personal dignity and independence.