Many insurance agents believe it’s to protect assets and to leave an estate to heirs. However, that reason is given by only one third of the people actually purchasing this coverage.
Other, possibly more important reasons are, the desire to avoid dependence on others and to protect their living standards. The US Department of Health and Human Services says that 70% of us will need some amount of Long Term Care. Who in your situation will first provide that care? Overwhelmingly it’s family who first shoulders the burden.
Long Term Care disrupts entire lives. Most people do not want their adult children having to care for them. We want them to care about us and insurance gives them the resources to hire and supervise professionals. Adult children often have children at home who need attention and ferrying to soccer practice. They also have careers, mortgages, and other commitments.
This is the first generation who are living long lives into their 80’s, 90’s and even past 100. When you live a long life the chance of needing very costly care rises significantly and it can wipe out a lifetime of savings rather quickly. LTC insurance allows the family to be the contractor, choosing providers who can best meet the needs of the family member while still being able to enjoy their time with that person. When the entire interaction is physical and emotional caregiving, visits become a burden instead of the enjoyment all parties want and desire.
This is the time of year when families get together, and sometimes realize that there may be problems developing. The time to plan for Long Term Care is not when problems are evident, but while still healthy and able to be active. Know that there are alternative solutions, and if needed call Romeo Raabe at The Long Term Care Guy 920 884-3030 to learn what can be done. But remember that avoiding dependence and protecting living standards can best be accomplished by those who were able to get the insurance coverage that allows this because they planned ahead.