The Consequences of Living Longer

Long-term care insurance is for the services and housing needed when someone lives a long life. Today, Alzheimer's is the leading cause for long-term care services. The longer you live, the more likely you are to need some type of care. The question is not who will take care of you, but rather what providing that care will do to your family's finances.

Long-Term Care is Usually Custodial Care

Long-term care is defined as needing assistance with the activities of daily living or needing constant supervision because of cognitive impairment.

Most custodial care is provided at home, not in a nursing home. About 43% of those over the age of 65 will need some nursing home care and may spend some time in a facility even if the stay is limited.

The vast majority of care is provided in the home. The question is who is going to be able to pay for this care.

Who Covers the Cost?

Medicare, the primary health care program for retirees pays only for skilled or rehabilitative care, not custodial care. Medicaid, a program for the financially needy will pay for custodial care, but primarily in nursing homes. Funding for home care and assisted living care is extremely limited.

Many veterans believe that the VA will pay for these services, but funding is limited and generally restricted to service-related disabilities. The federal government encourages veterans to purchase long-term care insurance.

Most consumers are forced to pay privately for their care. Unfortunately, the best retirement plan rarely takes into consideration the consequences of living a long life. The assets and income that have been allocated to pay for retirement must be used for the consequences of living a long life. As a result the seniors' worst fear may be realized if they outlive their income.

The Role of Long-Term Care Insurance

The use of insurance has become an important tool in planning for disability that may come by living a long life. The long-term care product has two roles: helping keep families together and allowing retirement assets to be used for the purpose for which they were intended.

Long-term care insurance does not replace the need for family involvement in providing care for the elderly, but rather assists the family by providing the necessary funds. It pays professionals to assist the caregiver by performing the most difficult tasks and allows the family to provide better care for a longer period of time in the home.

Financially speaking, this insurance allows your retirement plan to stay intact. The product protects the value of your retirement account and your anticipated retirement income.

When considering this or any other insurance products always look for an insurance professional, someone who specializes in the type of insurance you are seeking to purchase.