LONG TERM CARE INSURANCE
IT'S ABOUT INDEPENDENCE & SECURITY

by Alan Plafker, President & CEO
and Edward Huttick, Certified Financial Planner
Member Brokerage Service LLC
A Melrose Credit Union Service Organization



Being financially secure — Living life the way you want

That’s what independence is all about. But realizing your goals requires proactive planning including taking into account how the need for long term-care can impact your financial security, your lifestyle, and your family’s well being. Long-term care is the type of assistance people need on an ongoing basis as the result of a physical or cognitive impairment that prevents them from performing normal daily activities such as eating, bathing, and dressing.These impairments can result from old age, a debilitaing disease or an accident such as a vehicle accident.

The impact of long-term care — you’re probably not already covered

Many people mistakenly believe their long-term care needs are already covered, but long-term care assistance isn’t typically paid for by health or disability insurance. In addition, government programs such as Medicare and Medicaid aren’t designed to cover these costs. By planning ahead today — with long term care insurance — you’ll take an important step toward helping to protect your future.

  • National average cost for one year of nursing home care. $75,000 (1)


  • Annual projected cost for needing care in 30 years. $250,000 (2)


  • Projected cost for a three to five year care event in 30 years. $750,000–$1,250,000 (3)


  • Percentage of people over age 65 that will require long-term care services at some point in their lives: 70% (4)

The time to prepare is now — while you’re young and healthy

When it comes to long-term care planning it’s important to address your future needs sooner rather than later. Your age and health are key factors that will determine the cost of your long-term care insurance policy. The younger and healthier you are when you purchase your policy the more affordable it will be.The coverage you buy for your future also protects you today. If an accident or illness were to occur when you are relatively young owning a long-term care insurance policy would ensure you have coverage to help pay for the cost of your care.

The benefits of long-term care insurance A long-term care insurance policy helps protect your assets by providing you with a pool of money to help cover the cost of care. In addition, our long-term care insurance policies:

  1. Provide you with the ability to choose where to receive care

    — including your home, a facility, or in your community,


  2. Reduce the burden of care that may often fall on family members,




  3. Give you access to valuable support including helping you obtain the right care, assistance with the claims process, and




  4. Advice to help you and your family manage care decisions.

With long-term care insurance you can look to the future with confidence knowing you’ve taken the right steps to help protect your assets and your family. As with any insurance coverage, the protection that your policy provides is only as good as the carrier behind it. Make sure your LTC insurance policy is backed by a company with some of the highest ratings for financial strength in the industry.


FOOTNOTES

1. John Hancock Cost of Care Survey, conducted by CareScout, 2008. 2. Projected increase is based on a 4.1% rate of inflation as measured by the Consumer Price Index between 1978–2008. 3. Based on the John Hancock 2008 Cost of Care Survey projected at the average rate of inflation of 4.1%, between 1978–2008. 4. U.S. Department of Health and Human Services, National Clearinghouse for Long-Term Care Information, www.longtermcare.gov, September 2008.

For more information, talk to your financial professional, or the authors of this article.

 

 


Your Professional Insurance Agent—…
We want you to know about the insurance you’re buying.

Alan Plafker is President of Member Brokerage Service LLC, a Melrose Credit Union Service Organization. He is a licensed Insurance Broker and serves on the Board of Directors the PIANY (Professional Insurance Agents Association of NY) and on the Board of CIBGNY (Council of Insurance Brokers of Greater NY). His Agency insures thousands of polices for TLC Insurance as well as many policies for all types of insurance. You can reach him in his Briarwood, Queens office at (718) 523-1300 ext. 1082.

 

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