Is There is A Risk to Living Longer- Long-Term Care Insurance Can Help

Financial service professionals help client manage risk, most obviously the risk of death and disability. There is a less understood risk emerging that is going to face the aging baby boomers. This is the risk of longevity and is a threat to even the best-laid financial strategies.

While baby boomers worry about outliving their retirement savings, longevity has other implications as well. The older we get, the more likely we are going to need long-term care. The odds of needing long-term care increase with age, according to a 2007 report by the Health Insurance Association of America. The cost of this care can be staggering.

We are not even talking about just nursing home care. The cost of in-home care can drain retirement savings and change any plans for loved ones. Longevity poses risks and needs a strategy to hedge against this risk.

Medicare does not pay for unskilled nursing care, such as bathing, eating and other daily activities. This is often the kind of care that people need most. This is the type of care that keeps people in their own homes. Individuals need to understand that Medicaid is not the answer. You would first have to meet Medicaid’s guidelines for income and assets in order to have access to Medicaid/ Medi-Cal eligible nursing homes. In addition, Medicaid does not cover in home services.

As we get older, the cost of long-term care insurance increases along with the chance of becoming uninsurable. It is important to understand that long-term care insurance is part of comprehensive strategy that helps with the preservation of retirement income, asset protection, and wealth transfer.

Younger individuals are adding this protection to their retirement portfolio while the premiums are low and their good health enables them to get substantial discounts.

Businesses are losing work hours due to the “Sandwich Generation”. The sandwich generation are the adults caught in the middle of taking care of their own children while beginning to care for their aging parents. Employers bear the cost of long-term care when a worker needs to take time off or resign due to caregiver issues. Employers are beginning to see the benefit of offering long-term care insurance on a voluntary basis. Employers provide access to this valuable benefit often at a discount. This benefit can extend to family members as well.

It is important to pick the right carrier. A lot has been written about long-term care insurance carriers in recent months, not all of it good, particularly in relation to sudden increases in premiums. Choosing the right carrier enables you to have the confidence that the company will be around when it is time for you to receive benefits. It is important to choose a company with strong financial strength.

Now that we are all living longer, we will have to pay for it, but we do not have to exhaust all our resources doing so. With long-term care insurance, you protect yourself from the risk of longevity as well as protecting ones assets and maintaining your lifestyle.

Consult with an independent Long-Term Care Specialist that has the training in long-term care financing and planning (LTCP, CLTC). You will find this education at LongTermCareInsurancePros
Dane Petchul, LTCP, CLTC is a Long-Term Care insurance Specialist. He counsels his clients in Long-Term Care Planning and insurance. You can get Free information and articles regarding Long-Term Care and Long-Term Care insurance at http://www.longtermcareinsurancepros.com/ and download a Free Ebook.