Living Longer - A Blessing or a Curse?

Article submitted by Jaikes Financial Group. They can be reached at 239-263-9195 or visit their website at www.JaikesFinancialGroup.com

Did you know that the longer you live------the longer you live! According to the Transactions of the Society of Actuaries, with a couple at the age of 65, one of them will have a 50% chance of living beyond the age of 92. Even more interesting, they have a 25% chance of living beyond the age of 97. Due to modern medicine and healthy living habits people are living longer and dying slower. According to another survey it is indicated that there is a 54.5% that an individual over the age of 65 will experience a disability. Worse yet the US Department of Health and Human Services predict the prevalence of Alzheimer's disease after age 85 is 47%.

These statistics are somewhat disarming. If they are even close to being correct, how should we plan for our "Golden Years"? Most people have planned appropriately for retirement but often overlook their Achilles Heal in the process. That would be the need for long term care. Ironically about 40% of the care is given to individuals under the age of 65. Therefore long term care insurance is not just for the aged. Think Christopher Reeve, Terry Shaivo, car accidents.

The importance of having a long term care program in place has become paramount. Financial planners, Estate planning. Attorneys as well as adult children are beginning to have this difficult discussion with their clients and or parents. We all want to remain independent and die on a good hair day in our sleep. It's a nice thought but what if you don't. Do you have a plan? Long term care is not a pleasant subject but doesn't it make sense to be prepared for this as well?

Since Medicare pays for only skilled care assuming you are recuperative in nature and Medicaid is welfare, what are the other options? We could all move in with our children. Better yet, they could move in with us. Perhaps 50 years ago this might have been an option but for most families this would impose a huge burden on the adult children. Often times they have children of their own to care for.

You could self insure and pay for the care out of your pocket. For some people this would completely wipe out their nest egg as the cost of care can be upwards from $70,000 per year. Therefore shifting the financial burden from you to an insurance company might be a smart way to go.

There are several reasons people do not plan for this event. They think it will never happen to them. Denial is a vast reason people don't buy long term care insurance. Statistically there is about a 50/ 50 chance of needing care. Without having a crystal ball, it is always prudent to plan for the worst and hope for the best.

Some say it is too expensive. As for the cost of the insurance, an independent broker with years of experience can help to design a proper plan that is affordable. Another objection used is "I am never going to a nursing home." Nobody wants to go to a nursing home. Interestingly, 80 % of the long term care claims are paid to individuals in their own home. Not only can your preserve your dignity and quality of life but you can remain comfortable bringing the care into your own home during your "Golden Years". Most companies offer care coordination which is a program to help find the care you need so you may remain safely in your own home. Most long term care policies are totally comprehensive. That means they will pay for your care at home, assisted living adult day care and skilled nursing facility. The assisted living facilities have come along way. Many people thrive in these facilities as there are many amenities and the socialization can be a God send. According to some of the company statistics, claims paid for skilled care are about 10 %

The worst scenario is they want it but can't get it because of aserious health issue. Unfortunately, if your health renders you uninsurable, there are not as many other options available. This is why it is so important to plan ahead. The younger and healthier individuals have many more options. There are many long term care insurance companies available. It is always wise to pick a company that has had at least 10 years of long term care experience. Some of the biggest carriers are Genworth, John Hancock and MetLife. However, they underwrite your health. These underwriters have become very conservative and only accept certain health conditions. Fortunately there are many other insurance companies that will accept other health concerns. But it is nice to have choices as to which companies you want to be with so plan early.

If you work with an independent agent they will understand the underwriting policies as well as premiums charged from different companies. An agent who represents several long term care insurance companies works for you and not a particular company.

Living longer can be a blessing. If you plan properly for all of the risks that come your way, it will certainly remove some of the burden. With prudent financial planning you can truly enjoy your "Golden Years". While we can't keep it from raining, we can certainly give you a good umbrella.