HIGHROADS Online - May / June 2008

BECAUSE YOU BELONG

INSURANCE

Thinking About Long-Term Care Insurance?
When you reach a certain age, you start thinking about the golden years ahead. Most people like to think they will spend their retirement years at home, without the need for nursing assistance. But that is not always the case. According to government statistics, this year, 9 million Americans over the age of 65 will need long-term care. That number is projected to increase to 12 million by the year 2020, because of the growing senior population and longer life spans. While you may never need long-term care services, you may want to consider insurance to cover the possibility.

In deciding whether to purchase long-term care coverage, you should, of course, consider your personal situation. Louise Nash purchased a long-term care policy the year she turned 50. “My mom made me promise her I would buy it,” says Nash. “As a single person, it gives me a greater sense of security.” The resources you have available for financing long-term care should also factor in your decision, especially considering that as of 2008, the average cost of U.S. nursing-home care was estimated at $78,000 a year.

Depending on the specific policy purchased, long-term care insurance can provide benefits for a wide range of medical, personal, and social services. This may include in-home care, assisted living in a group facility, nursing home services, or adult daycare. Generally, specific requirements must be satisfied for coverage to be triggered. Under most policies, you must be unable to perform a certain number of daily living activities, like bathing or feeding yourself, before you are eligible for coverage.

Most long-term care policies contain maximum benefit provisions and exclusions you should be aware of before buying your policy. Policies typically exclude coverage for mental and nervous disorders, drug and alcohol addiction, self-inflicted injury or attempted suicide, and treatment paid for by the government.

For additional information and planning resources for long-term care, visit the National Clearinghouse for Long-Term Care Information at longtermcare.gov.

ASK AAA
As a AAA member, you are entitled to a discount on certain long-term-care (LTC) plans.
To receive a free AAA LTC planning kit, call Long Term Care Resources at 877-550-1222 or visit ltcr.com/aaa_arizona.