3 Myths About Long Term Care Insurance

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Many people have misconceptions about how much it will cost and who will take care of them when they are older.  Here are some straight facts to help you make a decision to protect yourself now and evaluate whether you should purchase long term care insurance.

With the first of the baby boomers turning 65 in 2011, the focus has shifted to how this generation will pay for their long term care.  According to one study, 70% of all Americans age 65 and older will probably need some form of long term care at the end of their lives.   On average, people need long term care for about three years but some need care for five years or more.  More than 20% of seniors need care in a nursing home.  Long term care not only includes caring for those in a nursing home but also includes assistance with daily living at home such as help with dressing, bathing, using the bathroom, eating and getting in and out of bed.  

Many people believe long-term care is costly, complicated and unnecessary.  However, much of the information they may rely on to make this decision is untrue.  Here are some misconceptions people have regarding their future need for care:

I Can Wait to See if I Really Need Long Term Care Insurance

Once you have a diagnosis of an illness, you cannot get coverage.  Once you apply for coverage, the insurance company will look at your most recent health history.  Only 17% of people in their 50s are denied coverage.  This figure increases to 45% by the time people are in their 70s, according to the American Association for Long-Term Care Insurance.  Like life insurance, long term care insurance is cheapest and easiest to purchase when you are young and healthy.

I Will Want My Family Members to Help Me

Although family members will probably have to help you if you don’t have coverage, you might not want them to.  If you need help bathing, using the bathroom or eating, most people would prefer not to have their children help them with these needs.  With Long Term Care Insurance, you have fund to hire a licensed home health care agency to assist you in your home and keep your independence.

Medicare Pays for Long Term Care

Medicare does not pay for long term care for a period over 100 days.  Medicare will only pay for long term care for short periods of time, such as the time it would take you to rehabilitate from an illness or injury.  Medicare does not pay for any assistance in the home, which many ill seniors require to avoid a nursing home.  If you need long term care and are counting on Medicare, you will have to apply for Medicaid, a poverty based federal program, which will kick in when you reach a certain level of poverty and deplete your assets, leaving nothing for your legacy. 

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