Social Workers' View of Long Term Care Insurance

by Chava White, LMSW-AP, CCM and Joanne Berman, LCSW

 

With a significantly longer life span than their grandparents, many aging baby boomers now have the mixed blessings of exploring the multiple options available for their futures. Delving through the sometimes conflicting and confusing information available in the golden years can be a challenge for people of all ages.  Exploring the array of sometimes conflicting, confusing information about assistance, facilities, levels or care and costs can be a difficult task for even the most informed. While the good news is that there is unprecedented and easy access to information, the not-so-good news is that the dizzying array of options can result in not fully understanding the implications of some important decisions regarding future care options that can dramatically impact your life.   

One relatively recent consumer development in this arena is long term care insurance. Its growth, accelerated by longer life spans, greater consumer spending power, limited and costly home aide and nursing and assisted living costs and stricter state guidelines for home care, has increased substantially. Long term care insurance offers various benefits at different levels. But it is clearly not meant for everyone. Those with limited resources can generally access state resources, i.e. Medicaid. Those with substantial funds can be self insured and be able to pay for their own care. Individuals in the middle income ranges probably are the most likely to need long term care plans.

Should you buy a long term care policy?  Well, it depends. It is a very individual matter and is a multi-faceted one at that. Financially speaking, the decision could extend for many, many years. And a long term financial commitment can be burdensome and overwhelming if one is living on a tight budget.  From the emotional aspect, it deals with getting older, possibly experiencing infirmities and losing independence.  It can be scary to take the policy and even more scary not to.  What does one do?  

For one thing, research is a must. Books, literature, the internet, and state and consumer agencies provide a wealth of information about long term care insurance. Social workers, who work daily with community resources, home care needs and options and educational materials, may be able to offer excellent advice and counsel and can be valuable helping partners.  They not only can help with available community resources, they can assist you with your concerns about whatever decisions you are considering.  Financial planners and attorneys are also an important part of this picture. They can help you with valuable information about the financial, legal and long term aspects of your decision.

There is much to learn and know about long term care and whether it fits your needs. While long term care insurance has been one of the fastest growing insurance products, it is still relatively new and has many aspects. It is best to feel confident about any decision you make regarding long term care. Understand, research, and ask questions.  And remember; don’t do anything hastily---you could be in it for the long term.

The following is being reprinted from the Medicare .gov website and is provided for consideration by the reader:

Long-Term Care Insurance Opportunities:	Long-Term Care Insurance Requirements/Limits:
Long-term care insurance gives you financial protection against the cost of long-term care services.	If you don’t buy a long-term care insurance policy from a reliable insurance company, you might not get the coverage you need in the future.
It helps give you more control and choices over your long-term care coverage. You are able to choose the type of services and customize your care based upon your financial and social needs.	Make sure you buy the right long-term care insurance policy that is right for you. Some policies offer more coverage than other polices. You may have to pay additional long-term care costs. Read the policy carefully to see what is and what isn’t covered.
You won’t have to use your savings or life insurance to pay for your health care needs. This will allow you to leave money or other items to your heirs (family and friends).	Some people might not be able to get a long-term care insurance policy because they have a pre-existing condition. A pre-existing condition is a health problem you have before getting a new insurance policy.
The Federal Long-Term Care Insurance Program offers long-term care insurance at a group rate for Federal and U.S. Postal Service employees and annuitants, members and retired members of the Uniformed Services.	Long-term care insurance policies can be expensive. You might not be able to continue to pay the monthly premium. Remember, it is better to buy a long-term care insurance policy at a younger age when premiums are lower. If this is done, a periodic review is advised to make sure your policy covers your current and future long-term care needs.
Your family or friends won’t have to worry about how you will get or pay for your long-term care.	Generally, if you buy a long-term care insurance policy without a nonforfeiture benefit and don’t use it, you won’t get your money back for the policy.

 

Chava White, LMSW-AP, CCM and Joanne Berman, LCSW are advance practice social workers at St. Luke's Hospital.