Do I really need this?
The chances are good that you might. In 1997, the Health Insurance Association of America estimated that more than 70% of people over age 65 might need some sort of home health care in the future. This care can be expensive, and the need for it can continue for years. In such a situation, a person’s savings could be used up paying for this care. If you have a Long Term Care insurance policy to cover these costs (or even just a part of them), you can help preserve your assets for your spouse, your children, another family member or even a favorite charity.
My family will take care of me. Isn’t that good enough?
Your children or other family members are probably very willing to take care of you if the need arises. However, if you need a lot of care, it may become impossible for them to care for you while still providing for the needs of their own families and working at their own jobs. Having some way to pay for care given by someone other than a family member may be a good way to solve this dilemma.
Won’t these costs be covered by Medicare?
Far too many people assume Medicare will take care of long term care expenses. In reality, long term care isn’t covered by familiar forms of insurance like health insurance, retiree health plans, Medicare supplement plans and Medicare, to name a few. These plans only pay for skilled medical care and most long term care is just maintenance – helping someone bathe, dress, move around, use the bathroom, etc. And, you must be at least 65 years old to be eligible for Medicare.
Is there any difference between an individual private Long Term Care insurance policy and a policy from the Federal Long Term Care insurance program?
Won’t these costs be covered by Medicare?
Yes. There are differences both in policy design and in costs. In some instances, an individual private Long Term Care policy will give more coverage and cost less than the Federal program. No single solution is best for everyone.
Are there any discounts available in private policies or the Federal program?
Under the Federal program, the rate you pay is based on your age and the benefits you choose to receive. Many private policies offer discounts to couples (some only require that 2 people share a household) and to people in good health. Some companies, such as Massachusetts Mutual Life Insurance Company (MassMutual), also offer a discount to Federal employees. With discounts, a private policy may be less expensive than the Federal program, sometimes substantially so
Is there one particular private policy that is recommended?
Again, no one solution is best for everyone. A professional who specializes in Long Term Care insurance and can work with more than one insurance company can help you choose what benefits you need and which policy is the best choice for you.
I already signed up for the Federal program. Is it too late for me to change?
No. You can still make a change. It’s in your best interest to consider all your options even if you already own a policy.
Where can I get more information?
The Recreation Association has more information about this. Here at the Library, they have arranged seminars about Long Term Care insurance that compare private Long Term Care insurance plans in general with the Federal Long Term Care Insurance program. Go to their website, WWW.RECGOV.ORG/LCRA, click on “Benefits”, and look for the links about Long Term Care.