Overview
 
I have found that long-term care insurance has been one of the fastest growing segments in the insurance industry for the past five years. Long-term care is broadly defined as services provided to people who are no longer able to take care of themselves due to chronic illness, injury, or the effects of aging. Care is typically provided in your home, a facility, or other community-based setting. The actual risk for needing long term care (both nursing home and home health care) services is greater than 50% (Health Insurance Association of America 1995). In addition, long-term care is not just a senior issue; over 40% of the individuals receiving assistance are between the ages of 18-64 (American Academy of Actuaries, January 1999).
 
Need For Long Term Care
 
There are several reasons for the increasing need for this type of care.
 
1. People are living longer. That’s the good news. The bad news is that the longer you live the more likely you will need care.
 
2. Family dynamics have changed. Family members may no longer be able to be the primary caregivers. Often, families are geographically dispersed and children are living in other parts of the country. In addition, women who may have in the past been the primary caregivers are now in the workforce and unable to assume this role.
 
3. You can no longer rely on the government to provide this care. Government systems are already overburdened and this will only get worse once the baby boomers begin to retire. The federal government has recognized this, which is why they are already offering long-term care insurance to federal employees. In offering their own long-term care program, the government is sending a clear message–get long-term care coverage because we will not be making this an entitlement.
 
4. The cost of care is continually rising. For example, nursing home average annual costs in metropolitan areas can exceed $100,000 (MetLife Mature Market Research Institute, Market Study-April 2002) and the average length of stay in a nursing home is 2.8 years. (“LTC Choice: A Simple, Cost-Free Solution to the LTC Financing Puzzle”-Center for Long Term Care Financing, September, 1999) If not planned for, long-term care services can be financially draining.
 
Policies
 
Today’s top policies offer an array of features, optional benefits, and payment variations to meet your individual needs. Long-term care insurance gives you choices when you need care. More important, coverage helps ensure the best type of care from the professionals you choose in the setting that is best for you.
 
Long-term care insurance helps give you financial peace of mind when you need care. A policy can help you preserve your independence, maintain your standard of living, protect your assets, and preserve your freedom of choice.
 
 
Contact Jeff Scheider for more info:
 
Phone: 847.382.2600 x232
E-mail: jeff.scheider@lpl.com