All of our lives, we have thanked God-ever so quietly perhaps-that someone, somewhere, has always been watching out for us.  When we’re young, it’s our parents, maybe our teachers, sometimes even a kindly, sharp-eyed police officer, often without our even knowing it.  As we age, our doctors, and, most significantly, our employers, gradually take over the watch.  We’ve grown accustomed to them making critical decisions about our lives; decisions that, at least until now, have demanded only minimal understanding or decision-making from any of us.  We just assume that someone is looking out for us.

Lately, especially in Michigan, all of that has changed.

Ask anyone in the mega-industry of automaking in this State; or the thousands upon thousands who have dedicated their lives to teaching our young in our school systems.  These once-fortunate employees have always enjoyed the very best of benefit packages—the very best health care, vision, dental, life insurance, and long-term disability.  And, as each of us knows, these same dedicated workers and servants have always been able to assume that their top-of-the-line benefits would carry them right through the remainder of their leisurely retirement for the rest of their days.

Now, however, in a matter of only a few short years, that big brother, the one who’s always been watching over us, has died right before our very eyes; and we, for our part, have been fairly helpless to do anything about it.  Now we ourselves have got to make the decisions that our employers always used to make for us. 

As we age, we absolutely must begin planning for our retirement and our senior years.  If we do not, our lives, and those of our families, can quickly turn to shambles.  It is happening every single day. 

Take a close look at the benefits you have available to you.  Clearly, there are now many gaps that were not there before.  We all must make some critical choices, and the happiness of ourselves and our loved ones may well hang in the balance.  Very few of us have unlimited financial resources.   That means, of course, that we each have to decide where we’re going to allocate, and how we’re going to protect, the finances that we do have: 
• what type of health insurance?
• which prescription Medicare plan perhaps?
• should we get vision, dental?
• how much life insurance and what kind?

And yet, even if all of these decisions are made successfully, the fact remains that one of the most serious issues we face as we age is the all-too-likely prospect of needing health care for an extended period of time.  We live a whole lot longer now.  We do gradually lose our good health, often cripplingly so, but we continue to live on nonetheless.  In 7 out of 10 cases of people age 65 or older, there is a dire need for long-term care, either in one’s own home, or else in an assisted living or convalescent care facility.  It is now the single largest health care risk, and certainly the most financially crippling to any family, that we face in this country today.

A stroke, heaven forbid, may cost you your life.  But, cruel as it is, if you survive that stroke, but remain fairly incapacitated, it may cost the lives and fortunes of your family …if you haven’t prepared.  It’s that simple; and it’s wholly up to you.

The average cost of Long-Term Care in Michigan today is $267 for a private room and $202 for a semi-private room; and the average stay is 2.7 years.  You’re looking at an average cost of $73,000 per year, or a total of $200,000 for the 2.7 year average.  That cost is now increasing at 5% per year.  Double this-$146,000/year-if both spouses need care.  We need to be aware that the average care-giving time at home is now 4.3 years. 

Think in terms of your total portfolio.  What portion of it has been allocated to your retirement lifestyle?  Protect that lifestyle.  Only long-term care insurance can do that if we end up being one of those 7 out of 10, …and that’s likely, isn’t it?.  Otherwise, you will absolutely decimate that long-hoped-for retirement lifestyle, for you, your spouse, and very likely even for your children and their families.

A few years ago our Federal Government made Long-Term Care insurance available to its 22 million employees.  Uncle Sam doesn’t pay for it; he just recognized its critical nature, and so negotiated a better group rate.  The same benefit choices were offered to our President and to his Cabinet that were offered to our local postal workers.  The statement coming from Washington was, “Long-Term Care insurance is each individual’s personal responsibility.”  Hmmm, no Big Brother anymore, is there?

Analysts concur that our precious auto industry will never again return to the way it was.  “Big Brother” is doing everything he can to survive himself, let alone having any leftover resources to look after us anymore.  Things will NEVER be the same.  The one area in which pre- and post-retirement-aged people will be participating (or not) on a level playing field is in the area of long-term health care costs.   “Everyone is ON HIS OR HER OWN.”

Dorothy McMahon is a Certified Senior Advisor and a Certified Long-Term Care Insurance Specialist.  For any further information or clarification, please feel free to reach her at 248-844-9787 or online at  WWW.LTCINSUSA.COM.