Myerson Agency

The State of Long-Term Care Insurance

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Who Cares?

Some folks love to dine out regularly, while others prefer the comfort of home-cooked meals. Many enjoy a balance of both options. Having options, and being able to exercise them, greatly improves the quality of our lives. So what happens if and when those choices suddenly disappear?

Anyone who has had a family member or loved one need extended medical assistance at home or at an assisted living facility knows two things:

  1. The cost associated with long-term care can be devastating.
  2. The emotional burden placed on the family can be overwhelming.

The costs associated with Long-Term Care (LTC) are not covered by Medicare or any other type of health insurance, other than a specialized LTC insurance policy. LTC facilities are available to individuals who are able to demonstrate they have no assets. However, for those individuals who are not indigent and do not qualify for one of these state sponsored facilities, the financial and emotional impact can be devastating.

The need for long-term care does not discriminate—no matter one’s wealth, marital status, or any other demographic. Families with children might consider themselves to have a “default” caregiver… someone who will always be around in the event of a long-term care need. But many others either don’t have this luxury, or would prefer not to be “a burden” on their children. Under these circumstances, who cares?

LTC policies are designed to pay a benefit (usually defined as a daily or monthly limit) if the insured can no longer perform certain day-to-day functions, or is cognitively impaired (as determined by their own physician). However, beyond shifting the financial burden to the insurance carrier, a LTC policy delivers the priceless benefit of peace of mind for the family. When benefits are triggered under a LTC policy, usually a time of extreme stress for the family, the carrier will step in and provide not only the payment of benefits under the policy, but almost as importantly, a plan of care. The plan of care will provide the family with options, be they to remain in one’s home or to be cared for in an assisted living facility.

In today’s marketplace, there are typically three options to acquire LTC coverage. Many of the disadvantages of traditional LTC policies are answered by some of the newer “hybrid” products, which can still provide lifetime benefits yet are not “use it or lose it” options. Each option should be carefully considered relative to the facts and circumstances of the individual. We have crafted a detailed comparative cost/benefit analysis of the three LTC coverage options, and would be happy to walk through these telling scenarios with you upon request. The Myerson Agency welcomes the opportunity to be of benefit to you or your clients by running a competitive Options Analysis on all available choices.

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