There is an astounding disconnect between the 65% of us that will require long term care and the 8% of us who have purchased a long term care insurance policy.
Over the last 25 years, this disconnect has stymied those of us passionate about a product which simply provides a bucket of money for custodial care to be used wherever you prefer–your own home; an assisted living facility; or a nursing home. We’re stymied because absolutely no one wants to spend between $60,000-$100,000 or more each year for care. And we’re stymied because there is no better plan than a policy with long term care insurance benefits.
In looking back to the early 1980’s when these policies first were designed, they were fraught with miscalculations, poor payouts and insurance companies that did not pay claims. Back then, accountants, financial advisors, estate attorneys, and even insurance brokers distrusted these new long term care insurance policies. Unfortunately, even into the 1990’s, with policies improved, redesigned and standardized, the early naysayers continued to influence consumers to stay away from this protection.
As the insurance companies continued to enrich their products into the early 2000’s, we were all flooded with statistics: people living into their 90’s and 100’s; a person diagnosed every 68 seconds with Alzheimer’s; women 60% more likely to need custodial care than men; gays and lesbians less likely to receive care from family members; and women leaving their jobs and their own families to provide custodial care for parents and spouses. According to the National Caregiver’s Association, over 65 million people were providing free care for a chronically ill family member and that translated to an equivalent cost of $375 billion dollars a year in services.
And now in 2014, with all of these facts and at least 25 years of experience both with insurance companies and our own aging families, we are still not protecting ourselves and our families. We’ve all heard the reasons. We all know these policies are not perfect but when we do the research, we also know there is no better plan. So go grab your bucket of money as soon as you can. Find a knowledgeable broker to give you options so you can design the best policy for what you can comfortably afford. Then just do it. Do it now while you’re insurable, while you’re this age, while the really good policies still exist. Do it for the people you love most in the world.