Fifteen years ago, long-term care
insurance was not on many
people's radar. Now it's a nearnecessity
in their financial plans.
So say experts in the field, including
Kathy Liguzinski, who specializes in longterm
care planning for the Retirement
Resource Center in Western Hills.
With longer life expectancies, "we
must face the realities of aging and at
some point needing care," Liguzinski
notes. "Providing care can have serious
consequences on an individual's family
and finances. Long-term care insurance
can help preserve assets, allow choices
about where and how care is given and
give peace of mind to the individual and
their family."
Product evolution has made policies
more flexible than they were in the early
days, when they were known as nursing
home policies, according to Liguzinski.
Now LTC policies allow the insured to
receive care in the setting of their choice,
whether it is at home, in an assisted living
facility, adult day-care center or a nursing
home.
So who should consider LTC?
Generally, those with assets between
$500,000 and $2.5 million, says Mark
Kleespies, a partner at THOR Investment
Management in Anderson Township.
People in that range can afford the LTC
premiums, but can't afford to insure
themselves alone without eating through
their assets. Those with assets higher than
$2.5 million can afford to insure themselves
and bypass LTC, Kleespies adds.
Those with roughly less than half a
million may not be able to afford the
LTC premiums, which can be pricey. A
typical premium
range
for someone
who is 55 is $2,500 to $4,500 per year. Premiums
go up with age, so someone near
50 might consider LTC coverage starting
in the early 50s.
But, Liguzinski advises, buying at a
younger age and working with a long-term
care professional to customize a policy can
make affordable LTC options for families
and individuals.
LTC insurance covers an array of treatment
options and will pay for all levels of
care: skilled, intermediate and custodial,
Liguzinski maintains,
"LTC coverage may help individuals
fund the care they need to stay in their
homes longer," according to Kleespies.
LTC policies also offer a number of bells
and whistles, and a choice of individual
or couples' coverage, which gives you so
many dollars to share between two people,
he says.