The Caregiving Years

The Caregiving Years

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Long-Term Care Insurance Feels Better Than Ever

It doesn't occur to me to read my Long-Term Care insurance policy just for fun, but with these tough economic times, I have found comfort in knowing that it is there and the benefits are growing.

Most feel that long-term care planning is an unpleasant topic. The thought of being old and chronically ill is a subject that is easily set aside. The truth of the matter is it is best to put a plan in place before a life crisis occurs. Why? While you are younger and healthier, the chances of getting long-term care insurance is greater. You many even benefit from the discounts available for preferred health.

Many are now part of the "sandwich generation" in between caring for aging parents and still actively involved with your own children. These realities help contribute to my appreciation of long-term care insurance policies. In addition, my grown children have a great appreciation of our long-term care insurance policies.

The uncertainty in the economy and the financial markets also make reading your long term care insurance policy a bit more enjoyable. Your lifetime maximum is one clearly defined number, no decimal points, share prices or "depending on market performance" caveats in the summary of coverage. It also feels nice to read the words "Inflation protection."

The best advice is to schedule an appointment with a Long-Term Care Insurance Specialist. You will receive a free, no obligation "side by side" quote from the top carriers in the industry.

Long-Term Care Insurance is Different than Investments

You would have to be living in a cave not to know that a number of financial institutions that were the giants of the industry are in the state of collapse. As a result, many are questioning whether long-term care insurance is worth the paper on which it is printed. It is understandable that one look at this financial mess with a jaded eye.

Let me explain that even though investments and long-term care insurance may both be part of a financial plan, they offer different benefits and risks.
Stocks and bonds are issued by a corporation and their value depends on the financial health of the company.

A long-term care insurance policy is absolutely a different animal. Insurance is regulated by each state and the regulators require that insurance companies put aside money (called "reserves") to help make sure that future claims can be paid. In addition, regulators restrict how these reserves can be invested,

It is important that policyholders understand that their insurance contract is backed by more than just the promise and goodwill of an insurer. There is actually money put aside to make sure claims can be paid.

As in the case of AIG, the policyholders are safe. Even in the worst case scenario where an insurer becomes insolvent or is unable to pay its claims, here comes the state's guaranty fund. Insurance contracts are regulated by the Division of Insurance (DOI) in the state where the contract was originated.

Insurance offers guarantees backed up by reserve funds and guaranty funds. You do not get this with your financial investments.

In a world of increasing uncertainly in so many areas, it's a another reason to make sure a long-term care insurance policy is part of your financial plan.

I can answer any questions or discuss your particular situation. You can contact me at 949-854-3001 or email dane@LongTermCareInsurancePros.com