Long-Term Care Insurance-Where is it When You Need it?

I cannot tell you how often I get a call from a distraught husband, wife, life partner , children or nieces or nephews of people they love. The call usually goes something like this.

• “My wife has been having trouble managing the household chores, shopping, etc. and just staying organized.”
• “My husband just came back from the Doctor’s office and was diagnosed with early stages of Alzheimer’s. “
• “ I think my mother is ready for a nursing home, she just can’t stay alone anymore.”
• “My uncle needs some assistance, I think an assisted living facility would be the right choice for him.”

The next question is always “I would like to learn about and purchase Long-Term Care Insurance for _______________.”

I am always sad to advise the client that long-term care insurance is not available to their loved ones in the above situations. It’s the equivalent of calling your local insurance agent as you are running out the door when your house is burning down.

Where is the insurance when you need it?

I guess that’s what insurance is. According to the English dictionary, insurance is summed up by these definitions.
1. Insurance: Legal contract that protects people from the financial costs that result from loss of life, loss of health, lawsuits, or property damage. Insurance provides a means for individuals and societies to cope with some of the risks faced in everyday life.

2. Financial Protection against loss or harm: an arrangement by which a company gives customers financial protection against loss or harm such as theft or illness in return for payment premium

3. Money paid by an insurance company: The sum of money that an insurance company pays or agrees to pay if a specific undesirable event occurs.

4. Means of Protection: An act, measure, or provision that gives protection against an undesirable event or risk

Why do we have insurance?

In life, losses are sometimes unavoidable. People may become ill and lose income or savings to pay off medical bills. Individuals or their relatives may die of illness or accidents. People’s homes or other property may suffer damage or theft. People also may accidentally cause injury to others or damage to the property of others.

No one knows in advance when a loss will occur or how serious that loss will be. The uncertainty surrounding potential losses is known as risk. Insurance offers a way for people to replace risk with known costs—the costs of buying and maintaining insurance policies.

Long-Term Care insurance is available with substantial health discounts so it is important to obtain this type of coverage when you are still in good health.

According to the American Association for Long-Term Care (AALTCI) the following is the percentage of Long-Term Care Insurance applicants who qualify for good health discounts or are declined coverage.
Percentage of Long-Term Care Insurance Applicants Who Qualify For Good Health Discounts

Age 40 to 49 --- 63.2%
Age 50 to 59 --- 51.5%
Age 60 to 69 --- 42.2%

Percentage of Applicants Declined Coverage (Individual Policies)
Age 50 to 59 --- 13.9%
Age 60 to 69 --- 22.9%

A good place to start getting information is talking to a Long-Term Care Specialist who represents multiple long-term care insurers. The costs vary and acceptable health conditions vary among the top carriers.