Choosing the Best Long Term Care Plan

With the Baby Boomer generation beginning to advance in years and the average life expectancy continuing to rise, the issue of long term care will continue to be in the spotlight. It is more likely than ever that at some point in time any given individual will require some form of assisted living care. This raises the important issue of how to pay for this care. The extreme costs of long term assistance threatens to empty savings accounts and heap debt upon the ailing elderly and their families. This financial environment has produced a product called long term care insurance which helps to offset the cost. A close examination of the product will help determine whether it might be the right solution for you.

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Factors to Consider

The insurance premiums should not cause financial difficulty. The purpose of this insurance (like all insurance products) is to prevent financial hardship not to create it.

Can you likely afford the payments for the remainder of your life? Unfortunately, many people cancel their policy (or have their premiums canceled) as they get older and can not afford the increased premiums. Often times the need for the policy will not arise until after the cancellation.

Do you have a significant amount of assets. If covering the premiums will not be a problem this is a great alternative allowing you to maintain a level of independence and preserve your estate for your family.

Benefits will vary. Policies will allow for a maximum daily amount ranging from $75 to $250 per day. (1)

Does the policy cover home care. Some companies allow for home care at a rate that is substantially lower than a tradition nursing home.

Does the policy offer increased benefit levels to cover inflation. If not than your protection would become significantly less as the years go on.

Some policies offer death benefits. This benefit will reimburse your estate the total amount of premiums that you paid minus any benefits that you received.

Long term care insurance is not an option that is right for everyone but for some it might offer the best solution available. If you decide that purchasing a policy is in your best interest make sure and research your options carefully so you can get all of the benefits that you want and need. Although long term coverage is not a fix all solution it is an option that may help protect and individual's savings and prevent themselves and their families from going into debt while financing an extended assisted living arrangement.

(1) http://consumerlawpage.com/article/insure.shtml

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About the author:

Mark Carney is a professional consultant with First American Debt Consolidation and Loans, a debt consolidation service specializing in financial education, credit counseling, and debt management services nationwide.