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November has been declared Long-Term Care Awareness Month

Long term care is often overlooked when people think about protecting themselves and their loved ones. It is difficult enough to cope with the emotional issues of a disabled loved one. However, the financial effect a long term illness can have on one’s retirement savings can be devastating. There are many reasons to think about long term care insurance as part of an overall financial plan.

Just as it is essential to protect against risks such as car accidents or house fires, it is equally important to consider how long term illness can deplete savings and retirement dollars.

Long term care insurance is a must have for everyone who can afford it. If there are only two things that you take away from this article, they are that we believe you can never have too much long term care insurance and that you can never buy it too soon. As a specialist in long term care insurance, I wanted to share some helpful information, however, please note all guarantees are subject to the claims paying ability of the issuing insurance company.

Although the old long term care insurance contracts were relatively expensive and not that comprehensive, in today’s world, long term care insurance is less expensive than you might think with broader contracts, and there are a couple of different ways that people can save on premiums such as purchasing at a younger age, while in good health, and with a spouse. Also, many people don’t realize that an employer can also pay premiums, which is an immediate cost savings if you can negotiate that as an employee benefit.

Your age and your health are important factors that determine the cost of long term care insurance protection. The costs are based on the purchaser’s age at application. The costs typically go up each year so it is best to purchase before you reach the age of 65. To view sample rates with age comparison, please click here.

In addition, if you purchase a long term care insurance policy at a younger age, you can benefit from special savings for good health. Your good health today can help you ‘lock in’ preferred health discounts that won’t change even if your health does as long as you keep the policy inforce. If you currently have a health condition, it’s especially important to find out if you can health-qualify before it advances.

Long term care insurance can also be more cost effective if you and your spouse purchase it together. Most insurance companies will discount your long term care premiums by 20-40% if you buy with a spouse.

Unfortunately, many people mistakenly believe they are already covered for long term care. This type of assistance is not typically covered by your health plan, your long term disability insurance, or by Medicare. Government programs aren’t designed to pay for all of your long term care needs. Medicare only pays for skilled care, while Medicaid only covers the very poor – those whose assets are at or below state-required levels. These programs often don’t cover care provided in your own home. Another misconception is that long term care translates solely into nursing home care. In fact, the majority of people who need long-term care remain in their own home or in their community. Most long term care insurance policies will cover people in all care settings, including the home.

On a personal note, three of my grandparents needed long term care. My maternal grandmother just turned 102 and now resides in a nursing home. None of my grandparents had the opportunity to buy long term care insurance when it would have been beneficial to them to purchase it, as it wasn’t available back then. As a result, my family has personally incurred in excess of $1 million for the cost of care for my grandparents. If only my grandparents had this insurance. Now, my parents have coverage for themselves and we have purchased long term care insurance as well.

How do you determine what is right for you? The first step is in your hands. Getting the information you need can help you make an informed decision. Waiting is never advantageous. Make it a priority to start planning now.

Written by Aviva Sapers, CEO of Sapers & Wallack, a third-generation insurance, benefits and financial services firm located in Newton. Sapers & Wallack serves hundreds of clients including Fortune 1,000 corporations, non-profit organizations, closely held firms, venture-backed start-ups and private individuals. Aviva offers securities and investment advisory services through NFP Securities, Inc. a Broker/Dealer and Member FINRA/SIPC and can be reached at asapers@sapers-wallack.com or 617-225-2600. NFP Securities, Inc. is not affiliated with Sapers & Wallack.