YO U R F IN A N C E S
I
m o s t p e o p le , w h e n I h a n d o v e r m y c a s h , I
w a n t s o m e th in g in r e t u r n —w h e th e r i t ’s a
fa b u lo u s v a c a tio n o r ju s t a p iz z a d e liv e re d
to m y d o o r. E v e n w h e n I p a y m y ta x e s , I
e x p e c t s o m e th in g b a c k : g o o d s c h o o ls ,
w e ll- tr a in e d p o lic e , ro a d s w ith o u t to o m a n y p o th o le s .
W ith in s u ra n c e , h o w e v e r, th e b e s t I c a n h o p e fo r is th a t
I a m flin g in g d o lla rs to th e w in d . I c e r ta in ly d o n ’t w a n t
to m a k e a c la im . T h is is e s p e c ia lly so in th e c a s e o f
lo n g -te rm c a re in s u r a n c e —y e t it c o u ld b e o n e o f th e m o s t
im p o r ta n t p o lic ie s y o u ’ll e v e r o w n .
U n lik e tr a d itio n a l h e a lth in s u ra n c e , lo n g -te rm c a re
in s u r a n c e c o v e rs c a re fo r s o m e o n e w h o n e e d s h e lp w ith
b a s ic ta s k s lik e b a th in g a n d e a tin g . “ P e o p le th in k i t ’s
n u r s in g h o m e in s u ra n c e ,” sa y s P h y llis S h e lto n , a u th o r o f
Long-Term Care: Your Financial Planning Guide.
O f
c o u rs e , n o o n e lik e s th e id e a o f e n d in g u p in a n u r s in g
h o m e —w h ic h p ro b a b ly e x p la in s w h y so fe w p e o p le b u y
lo n g -te rm c a re in s u ra n c e . R ig h t n o w , th e r e a re o n ly
a b o u t 4.5 m illio n in d iv id u a l p o lic ie s in fo rc e , a c c o rd in g to
a c tu a ria l a n d c o n s u ltin g firm M illim a n . T h e tr u t h is,
h o w e v e r, th a t m o s t lo n g - te r m c a re p o lic ie s c o v e r s o m e o r
EVERYDAY M ONEY
w ith
Karen Cheney
%/
Ensure
Your Long-
Term Care
P ic k in g th e r ig h t lo n g - te r m c a re
in s u ra n c e m a y b e th e m o s t im p o r ta n t
r e tir e m e n t p la n n in g y o u e v e r d o — e v e n
if y o u n e v e r w a n t t o u s e it. H e re ’s w h a t
y o u n e e d t o k n o w .
PHOTO H E LE N N O R M A N
all o f th e c o s ts o f a s s is te d -liv in g fa c ilitie s a n d h o m e c a re ,
in a d d itio n to tr a d itio n a l n u r s in g h o m e c a re .
“ L e s s th a n 15 p e r c e n t o f lo n g -te rm c a re is in a n u r s in g
h o m e ,” sa y s S h e lto n . “ T h is in s u r a n c e c o u ld b e w h a t
k e e p s p e o p le
out
o f a n u r s in g h o m e .” I n th a t lig h t, th e
p o lic ie s a re fa r m o re a p p e a lin g . T h e r e ’s a lso th e fa c t th a t
m o re th a n h a lf o f 6 5 -y e a r-o ld s to d a y w ill n e e d lo n g -te rm
c a r e a t s o m e p o in t in th e ir liv es. So, if I b u y a p o licy ,
t h e r e ’s a d e c e n t c h a n c e t h a t I w ill u s e it o n e day. I n fa c t, I
m a y b e p r o te c tin g m y s e lf fro m th e o n ly th in g w o rs e th a n
n e e d in g lo n g -te rm c a re : n o t b e in g a b le to a ffo rd it.
LONG-TERM CARE AT A GLANCE
• Long-term care insurance covers care for someone
dealing with a chronic health condition who may need
help with basic needs like bathing and feeding.
• Long-term care policies are not necessarily for
nursing home costs. Policies can cover assisted-living
and home-care situations.
• Policy costs vary widely from state to state, so if
possible, base your costs on where you plan to retire,
not where you live now.
1 6 2 NOVEMBER 2008 BETTER HOMES AND GARDENS
