However, this is not a new problem. The advances in medical science bring longevity. With longevity comes the costs and burdens of aging. These health issues can be from illnesses, accidents, or just the impact of aging.
Caregiving is always hard on family members. The role of the caregiver is physically and emotionally demanding. You really can’t depend on a spouse since if you are older, so is your spouse. Adult children will have their own careers, families, and responsibilities. A recent poll by the Associated Press-NORC Center for Public Affairs Research says many young adults are already providing long-term health care services for older loved ones. It is not easy for them.
The poll indicates one-third of American adults under age 40 have already provided care for older family members. Another third expect to be called upon to do so within the next five years.
The risk of needing long-term health care is high and increases as you get older. Once you get past age 40 you will notice changes in your health. You see changes in your body. As you get even older you see decline in your memory.
What this means is the chance of needing extended health care is less an “if” and more a “when” and “how long.”
The fact is the risk of needing extended health care is simple: it will either happen, or it won’t.
When you do need long-term care, someone will be responsible for finding a family member to provide care or purchasing care, either at home or in a facility. The clear majority of long-term care services are custodial in nature. Custodial care is when you need help with normal activities of daily living or require supervision due to a cognitive problem like Alzheimer’s or another type of dementia.
Health insurance or, when you are 65, Medicare and your Medicare Supplement will pay for only 100 days of skilled care services. Long-term care is both a cash flow problem and a family problem.
Yet, some financial planners and insurance agents would rather you not explore Long-Term Care Insurance. Many don’t understand the product, underwriting, policy design, and the power of the LTC Insurance Partnership Program, which is available in 45 states.
Why? There are several reasons. Some are just ignorant of the facts. However, most of them are very aware of the impact of the financial costs and burdens of aging. So why not Long-Term Care Insurance?
There is a huge misperception of the cost of policies. You may have even read some of the articles. They point to high premiums or premium increases over the time.
The fact is premiums are very affordable for most people. Sure, if you are 75 when you get a policy, the premium will be based on that age and your health at age 75. However, people are adding LTC Insurance to their retirement plan prior to retirement, with the bulk being in their 50s. Most of my clients are age 45 to 67. At these ages, premiums are very affordable, especially if you are in good health and your policy is properly designed
