We now have some fabulous, simple-to-use, easy-to-understand tools that show you arithmetically why owning long-term care insurance makes so much sense.

You can find each of the tools described below by clicking on this link.

• Cost of Care Generator: Check out the costs of care for the major cities in your state.

• Self Insuring (Savings Chart): See the financial ramifications of trying to save to pay for long-term care.

• Cost of Waiting: Hesitation can be costly. If you’re thinking about waiting before you buy, see how this strategy may effect you.

• Co-Insuring: You can keep your long-term care premiums low if you co-insure. This charts helps you determine your co-insurance tolerance.

• Inflation: Inflation will cause the cost of care services to increase over time. See how a   Benefit Increase Rider helps your policy keep up with inflation.

• Elimination Period: The Elimination Period is your policy’s deductible and is measured in days.  Translate your deductible back into dollars to see the real costs to you.

• Lump Sum Chart: Find out how much money you need to put aside today to pay for a future long-term care stay.

• Recoup Premiums Chart: Find out how many days on claim it will take you to recoup all of your premiums paid.

In “Revenue crisis ahead, state warned,” (Houston Chronicle, January 3, 2012, B1, B7) http://www.chron.com/default/article/Leaders-warn-of-more-budget-problems-in-Texas-2972833.php Gary Scharrer reported that at least a $15 billion shortfall in the state Medicaid program has been projected for next year.  This mammoth deficit can be largely attributed to TX governor Rick Perry’s insistence that the 2011 state budget be balanced not with any tax increases, but via massive cuts in social and educational programs. 

A similar approach is common in many states and Congress, much to the dismay of proponents of social programs for the needy.  Sadly, this means that there will be even less financial support for long-term care (LTC) financed by Medicaid for the least fortunate in our society. 

These cuts will be bad news indeed for anyone who has been counseled to “game the system” by spending down or sheltering their assets and then claiming indigent status to qualify for LTC covered by Medicaid. 

Responsible planning for their final years, including LTC insurance, will ensure that increasing numbers of Americans can avoid the emotional & physical stress that 70% of families will face as a loved one needs care.  And such planning will also greatly reduce the financial burden that so many families will face.

 

 

Honey Leveen at press conference for www.3i4needmore.com

Some elders (especially men) may think that if government funds are not available to cover their LTC, their spouses can become their caregivers.  But another trend will make that gamble even riskier!  Recent research http://www.nytimes.com/2012/03/02/us/more-americans-rejecting-marriage-in-50s-and-beyond.html?scp=1&sq=%22Reject%20Marriage%22&st=cse (New York Times, March 2, 2012) documents the rapidly growing separation/divorce rate among Americans over 50.  So if husbands are planning to depend on their wives for care, the odds are growing that their wives will have left them to fend for themselves.

The undeniable fact is that depending on the government or family members to provide LTC is a very bad bet!  So what’s the answer?  The only sure way to ensure dignity & choice and to avoid emotional/physical stress and financial ruin is to purchase LTCi TODAY.