Long Term Care Insurance: A great gift

Too many people put off planning on how to care for a loved one who becomes sick or needs assistance with Activities of Daily Living (ADL) for until it is too late. Unless you are either very wealthy, or choose a policy that will protect against the high cost of Long Term Care, there is a good possibility the cost of your care will outlive your well planned estate.

A good friend of mine went to work for a financial services firm shortly after college graduation. After her training she truly believed in the value of Long Term Care (LTC) insurance and began paying towards and LTC policy for her mother. My friend was an only child and her mother was divorced, so she knew any future burden of care would fall on her shoulders. At the time she bought the policy her mom was working, in great health, and by buying in advance my friend was able to lock in an affordable rate. She no longer has to worry about the burden of providing continuous care for her mother if she needs help with day-day activities and full-time assistance.

On the other side of the tale is my father-in-law’s father. Papa is confined to his bed with advanced Alzheimer’s and his wife has dementia. Papa and his wife raised ten kids, paid off their house, and built-up a significant retirement savings throughout their long working career, but they never bought a Long Term Care policy. Currently nurses take care of Papa five days a week, leaving Papa’s kids with the responsibility of his weekend care. For the last year my father-in-law has travelled 3 hours each way once a month to fill his rotation as caretaker.  What was once a significant savings has dwindled, if Papa survives much longer they will have to look into a reverse mortgage to finance his continued care.

Consider this; the daily cost of assisted living care is roughly the same as a five-star hotel. Few people can afford a weekend at a five-star hotel, let alone months to years in at that rate. Are you well positioned if you, or a loved one, require Long Term Care for a year or more?

Cascadia Insurance Agency      (425) 353-1499