By: Stanley Fevrier of New York Life
Long-term care issues have been everywhere in the news lately – from stories of people needing these services to how the government is responding. But there is also a lot of conflicting, and even mistaken, information. Misconceptions may have prevented you from including long-term care planning into your retirement portfolio. But long-term care planning can be a critical component to any comprehensive retirement plan. So now is the time to dispel these myths.
<BR><BR>Misconception #1: Long term care insurance is not needed
<BR><BR>Truth #1: The U.S. Department of Health and Human Services indicates that people age 65 face a 40% risk of entering a nursing home at some point[1]. Living a long life increases your risk of needing long-term care. Isn't it more prudent to insure against what that risk may do to your family and your financial plans?
<BR><BR>Mistake #2: Long-term care is only for the elderly.
<BR><BR>Reality #3: As many as 6,000,000 people between the ages of 18 and 62 require long term nursing home care as a result of illness or accident, based on GAO studies of nursing home populations.
<BR><BR>Misconception #3: I have the resources to afford long term care.
<BR><BR>In 2008, nursing home costs averaged over $76,400 a year nationally, but in some regions these costs are sometimes twice that amount[3]. How long can you pay for these expenses without jeopardizing your financial plan or exhausting your savings? It may make good sense to transfer this financial risk just like you do with your homeowner's insurance or auto insurance. Even if you can afford to pay for long-term care services out of pocket, why would you want to when you can transfer the cost to an insurer for premiums that may total a fraction of the cost of care?
<BR><BR>Mistake #4: Medicare will pay.
<BR><BR>Medicare does pay for nursing home care, but only for a maximum of 100 days and if the 3-day qualifying hospital stay requirement has been met. In addition, Medicare will only pay as long as you are showing progress towards recovery. Once your condition becomes stable, even if you are not fully well or back to a completely healthy state of being, Medicare rules indicate that benefits will stop. Also, Medicare does not pay for individuals to attend an adult day care or for the room & board expenses at an assisted living facility.
<BR><BR>Misconception #5: Medicaid is the "safety net" after Medicare termination.
<BR><BR>Truth: Qualifying for Medicaid requires spending nearly all your assets before the government will provide aid.
<BR><BR>With long life comes long-term planning. Make a plan for you and your family today. For more information on long-term care insurance, please contact Stanley Fevrier, Agent, New York Life Insurance Company at 339-5328242. www.sfevrier.com
<BR><BR>The purpose of this piece is solicitation of insurance. An insurance producer (agent) may contact you. New York Life Insurance Company long-term care insurance is issued on policy form series ILTC-5000 and INH-5000 with a state identifier and edition date. Example: Examples: for Idaho ILTC-5000 (ID) (1001) and INH-5000 (ID) (1001) and for North Carolina ILTC-5000 (NC) (1001) (Rev. 0606) and INH-5000 (NC) (1001) (Rev. 0606) and for Pennsylvania ILTC-5000 (PA) (1001), FLTC-5000 MLP (PA) (0503), for Tennessee ILTC-5000 (TN) (1001) and INH-5000 (TN) (1001) and for Texas ILTC-5000 (TX) (0305) and INH-5000 (TX) (0305). New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010.
<BR><BR>[1] Health Insurance Association of America. A Guide to Long-Term Care Insurance. 2007. Page 3.
<BR><BR>[2] Health Insurance Association of America. A Guide to Long-Term Care Insurance. 2007. Page 3.
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Bio:
About the author: Stanley Fevrier is the leading insurance sales agent for NY Life in southern New England.For more information on <a href="http://www.sfevrier.com">Planning for Long Term care</a>
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