The Basics of Long Term Care Insurance - LTCI

Long Term Care Insurance (LTCI) is a relatively new, interesting product. It covers the cost of the care a person needs when one can no longer perform the activities of daily living. This insurance is accessed when, because of physical or mental incapacity due to accident, disease, frailty, senility or Alzheimer's, one can no longer get out of bed, dress, bathe, eat, toilet, or is incontinent. To qualify for claim it must be certified by a medical professional that the policy holder needs assistance with at least 2 of these activities for at least 90 days.

Like life insurance, to qualify to buy this insurance, one must prove that he/she is in good health. This information is acquired through a personal interview by phone or face-to-face, and from doctor's records by the underwriter. However, the conditions that will allow qualification may be different than life insurance. The company is looking, not for conditions that might end one's life, but for conditions that might allow one to live, incapacitated, for a long time. For example, a heart condition may be looked at totally differently if the condition has been corrected and the person can be expected to maintain a normal life style. At the same time, uncontrolled high blood pressure, which can lead to stroke is a major concern. It is important to work with a company that is fair, but vigilant, so that your money is not being spent unnecessarily and the company will be there when you need them.

Once a person qualifies to claim long term care benefits, services may be delivered in a variety of settings. One may stay at home, having chore or skilled care people come to the house. Often it even assists in the cost of making modest modifications in the home, so that the person can continue to live there. It also allows for one to move in with a grown child, who may need to make use of an adult day care center while they are at work. Also covered is the cost of short stays in a facility while the caregiver is out of town.

As time passes, more and more of us are living longer, and there are more alternatives for care of the infirm. Twenty years ago there were no Assisted Living, or Memory Care Facilities. These, too, are covered by current long term care insurance along with Foster Care Homes and Hospice Care.

When buying long term care insurance there are several things to take into consideration. You'll want to evaluate your family history for conditions you are most likely to develop. Also, you'll need to realistically consider who is available to help care for you. Do you really want to live with your children? Can they quit their job to care for you?

One factor we have all learned to take for granted is inflation. You can no longer buy a nickel ice cream cone or pack of gum. Inflation will also affect how much money you will need for care in twenty or thirty years from now, when you are more likely to need to go on claim.

How much does long term care cost where you live? Are you likely to use this in your current community, where your children live, or even overseas? How much are you able to cover from your own income, both on a monthly basis, and as a one time deductible?

How long is the average stay in assisted living or in a nursing home? How long did Uncle Bill live at home with his wife caring for him before they chose to move to assisted living? Is it important for you to stay in your own home? Would you rather be in a place where you can socialize and have activities provided? What about the upkeep of your home? One problem the elderly encounter is the inability to maintain their home. How much of the value of the house is lost with its eventual deterioration? How much does it cost to have someone else do the work?

These are some of the issues that an agent will help you consider along with a variety of options in the policies. Do you and your spouse want to share the length of care available to you? Do you want the cost of premium you have paid to the company, but did not use, to go to your estate? How long can you afford to pay before the insurance begins to pay? How long and how much do you want the insurance to cover?

Long Term Care Insurance is not a product like the sofa you just bought. It won't lose value over time. It is not something you will replace. It is not going to go on sale next month. In fact, the longer you wait to plan for long term care, the more it will cost. Not only is the cost dependent upon your age, but as the insurance companies gain information and statistics on this relatively new product, they sometimes find they miscalculated a factor and are under priced. Then they put out a new, more expensive policy, rather than raise rates on policies already in place.

A knowledgeable agent who works with a variety of strong, reliable companies can help you through this maze to the peace of mind that comes with knowing your family will be spared some of the stress associated with the need for helping you.

Source: Suzanne Webster, CLTC, CSA

Suzanne is health insurance licensed in the State of Oregon, and has earned the designations of Certified Long Term Care (CLTC), as well as the Certified Senior Advisor (CSA). She works through MasterCare Solutions, the oldest and largest exclusively long term care brokerage in Oregon. She uses 8 well established, reliable and financially secure companies.

Suzanne is interested in helping people sift through the maze of long term care insurance, and making choices that suit their own specific situation. When someone asks, "How much does it cost?" Suzanne says, "It really depends on your age, health, affordability, needs, and concerns. It's kind of like buying a car. There are different companies, each with different models, and each model sporting a variety of features and choices.

Suzanne helps folks protect themselves and their family from the financial and emotional stresses of long term care. She's an expert with integrity who can help you design a policy to specially fit your needs.

Posted April 2008. Markets: Oregon, Portland, Salem