Ask Ken: Think about long term care insurance

Question:My husband and I are close to retirement and we both have parents in assisted living. I can’t believe the costs. What do you think about long term care insurance?

Answer: I think everyone should consider it.

Of course, as with all types of insurance, it is important to know what is covered, what is excluded, what your cost could be and what the risk of not having insurance is.

Most of us feel we don’t need the long-term health insurance because we are healthy - that is like waiting for your house to burn down before you buy an insurance policy on it.

Here are some of the arguments I have heard about considering long-term care insurance and my comments on each of them:

I am in good health and have a nice retirement that can take care of me if anything happens: Think about what happens if your health changes and you need care. Even if you’re putting money into an account specifically for future health care costs, don’t assume it will be enough. Long-term care costs can cost more than $200 a day. Think how long your nest egg would last.

My health insurance will cover my bills: Check you coverage - most health insurance only covers hospitalization and skilled care may be limited in both dollar amount and time of care. If you are on Medicare the same is true - take a look at the long term care coverage and limitations.

My family will take care of me: Get real. I have a wonderful family and they have promised they will visit me if I become a guest or resident of a “facility.” You may have a loving family, but they have a life too and you have to realize that your family probably isn’t going to be there or able to bathe, dress and feed you daily. And would you really want them to?

It only covers nursing homes: Most policies include home care, adult day care and assisted living in addition to nursing homes. Some policies will also pay for home modification and other necessary training and support to help you remain in your home. Long-term care is about the services, not the place.

It’s too expensive and I can’t afford it: Consider the alternative costs. Truth is there are different costs for different long-term care contract features and the younger you start coverage the lower the premiums.

As with most health insurance your age and your health at the time you purchase the contract will affect the cost. In addition many long-term care insurers also give discounts for married couples and good health records.

Lastly, long-term care insurance isn’t just for seniors. According to the American Association for Long-Term Care Insurance 40 percent of those who needed the benefits are between the ages of 18-64.

Remember, if you’re in poor health or are diagnosed with a serious health condition, you might not be able to get a policy at any cost. So consider your options, think about long-term care and what the alternative costs might be.

Need answers to your financial questions? Email Ken King, former executive director of Family Service Association of Sheboygan, at ken_king47@yahoo.com. Family Service Association is a United Way agency.