Don’t underestimate the importance of long-term care insurance



It’s unpleasant to think you might need help caring for yourself, but it’s important to have a plan in case you do

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Fear of losing independence is one reason many women ignore long-term care issues, neglecting to talk about things like long-term care insurance, assisted living or nursing home care in their later years. According to the 2012 State of

Planning Survey, 60% of women and 56% of men said they did not have a plan for long-term care. Just over half had discussed long-term care with family members.

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But, it’s an important discussion to have because two-thirds of current 65-year-olds will need some kind of long-term care, and 20% will need care for longer than five years, according to the Department of Health and Human Services.

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This is especially important for women to consider because women tend to live longer – an average of five years longer, according to the American Association for Long-Term Care Insurance (AALTCI). As a result, many women deal with long-term care issues twice: Once in helping with the care of her spouse, and then after his death, she will likely need long-term care herself. As AALTCI notes, almost half of long-term care insurance claims occur after age 80. Since more than two-thirds of Americans aged 85 or older are women, it’s likely women account for a good portion of those claims.

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Many people think long-term care is covered by Medicare or Medicare supplemental insurance. It’s not. Long-term care generally is paid out of pocket or through a long-term care insurance policy. Since care can be very expensive, it may be beneficial to consider your options now before you need it.  Initiate a conversation about long-term care with your financial advisor and your loved ones. The conversation should have two parts:

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• What form do you want your long-term care plan to take? Staying at home, moving in with relatives or moving to an assisted living facility?

• How do you plan to pay for this plan?

A policy could provide you with a quality of care you might not otherwise be able to afford, and could provide family members with a financial safety net should you become incapacitated. Your financial advisor can help you choose the coverage you need.





































Investing involves risk and investors may incur a profit or a loss.

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Material prepared by Raymond James for use by its financial advisors.