A Long-Term Care Primer: The Need and the LTCI Option

A very informative booklet— "Long Term Care Insurance or Medicaid: Who Will Pay for Baby Boomers' Long Term Care?" that can be found on the American Council of Life Insurers website can be a good place to learn more about LTC insurance for yourself and your clients. While the report was published several years ago, its content is still helpful, not the least of which is understanding how the need for long-term care will grow. The study says that 55% of Americans aged 85 and older "already require some form of  long-term care and about 19% of all seniors suffer some degree of chronic impairment.  By 2050, it is estimated that up to 5.4 million seniors will need the services of a nursing home—the most costly form of long-term care—and another 2.4 million will require home health care."

As with any insurance product, the key thing to remember is the fiscal soundness of the company from which you purchase the policy. You want them to be in business when any claims come due. Also, in an attempt to distinguish their products in a crowded marketplace, insurance companies have increasingly conjured up lengthy menus of discounts, special features, expanded benefits and riders. The language of LTC policies is often complex and not standardized so try to rely on trustworthy and knowledgeable advice to get the coverage that's appropriate to your needs.

Advances in medical care now allow us to be basically "rebuilt," extending what the specialists call health expectancy. That means living longer and free of disability, the very definition of "quality of life." Fortunately, the insurance market is now adapting to this shifting landscape with innovative options that provide needed flexibility for families.