The Times Herald (Norristown, PA)
Longterm care insurance is not for everyone
I recently completed a life expectancy survey developed by professors at The University of Pennsylvania. I was pleasantly surprised to learn I’m estimated to live until age 96, and I have a 75 percent chance of making it to 87.
These statistics got me to thinking about longterm care insurance. Should I consider it? A lot of individuals nearing or past retirement are similarly concerned. Should they buy such a policy? Some people should. For others, it’s an unnecessary expense.
Long-term care (LTC) in the United States has evolved over the course of the last century beginning in 1935 with the establishment of the private nursing home industry. Today, LTC can range from in-home care or nursing home care to various lifestyle choices, such as personal care, continuing care retirement communities and other assisted living facility options.
To meet financial burdens of older Americans, who may require long-term care, several programs were introduced. Many were never enacted. Medicare and Medicaid were passed as amendments to the Social Security Act in 1965. Medicare doesn’t provide for LTC. Medicaid covers institutional, but not at-home care. Many Americans assume Medicare pays for LTC.
The insurance industry, recognizing growing problems among older policy holders, introduced long-term care coverage in the late 1970s. Long-term care insurance provides policyholders with peace of mind that they will be able to afford nursing home, assisted living or athome care if it becomes necessary. It usually covers custodial care, which includes help with eating, dressing, walking, bathing and other daily activities. Prior to this type of coverage, the expense for these services fell mainly on family members.
Traditional health insurance rarely covered long-term care. Countless people were forced to sell their homes or drain savings and investments to pay for nursing or assisted living expenses. Long-term care insurance is designed to combat family financial anguish over the care of loved ones. By the late 1980s and early 1990s, this bold new coverage was in great demand, and insurers made money. All was right with the world. And, then it wasn’t. Americans began to live longer. Health care costs rose. Initial premiums charged were of-