"Long-term Care Insurance"

“Long-term care insurance, should I buy it or skip it?” It’s a question many of us are asking ourselves for good reason. We are getting older and are fearful that our physical or mental health may fail. “Once incapacitated and dependent on others, will we outlive our retirement savings?”

To help make a decision regarding long-term care insurance, the publishing industry has turned out a half dozen new books on the subject. Three new books recently acquired by the Library are; The Consumers’ Guide to Long Term Care Insurance by Stephen F. Rowley, Long-term Care, How to Plan & Pay for It by Joseph L. Matthews, and Choosing the Right Long-Term Care Insurance, Difficult Decisions Made Easy by Benjamin Lipson.

Rowley’s Consumers’ Guide book is the most concise at 94 pages. He encourages the consumer to spend a lot of time researching options. A 65-year-old could easily pay a yearly premium in excess of $2,000. With an average remaining life expectancy of eighteen years, that person could have invested $36,000 or more in a plan and not receive any benefit, or receive in benefits only a portion of the original investment. If a person has a supportive family and a strong network of friends, a long-term care insurance policy may not be in the person’s best financial interests. If a policy appears to be a viable choice, Rowley recommends that the consumer research the financial ratings of the company. It would be an unmitigated crime to have deprived oneself of money to pay for long-term care insurance only to learn that the company does not have the resources to support your care when you are in need.

Matthews’ book, Long-Term Care, How to Plan & Pay for It (in its fifth edition) is published by NOLA, a company well respected for its reliable do-it-yourself legal and business books. Again, this author stresses the importance of learning if long-term care insurance is a good investment for you. Matthews encourages the reader to use “The 5% of income rule” which is, if at 80 years of age, in addition to your home, you expect to have assets no greater than $300,000 and less than $50,000 per year in income (includes Social Security), then a long-term care policy might be a reasonable investment provided the monthly premium is no more than 5% of your current income. If you expect to have sizable assets at 65 years of age, it might be more prudent to invest the same 5% of your income for greater liquidity and protection.

The author of the book, Choosing the Right Long-Term Care Insurance, is an advocate for patient rights and is an authority on long-term care insurance. His book will also assist the reader to determine if he is among the 40 percent of the people who do not need this kind of coverage. The author, Benjamin Lipson, cautions the consumer about distinguishing fact from fiction in the sales pitches and knowing what you have purchased so that you receive the benefits you paid for when you make a claim.