There are numerous locations where Long Term Care may be received including; and most importantly, in your home, an assisted living facility, an adult foster care home, a home for the aged, an Alzheimer’s facility, an adult day care center, hospice care, respite care, nursing home, or a continuing care requirement community. These options are referred to as the continuum of care.

A formal caregiver such as an RN, LPN, LVN, a home health aid or informal caregiver such as a family member or friend can provide Long Term Care. The levels of care are called skilled, intermediate and custodial, or basic care.

The Definition of Long Term Care Insurance
Long Term Care insurance is an insurance policy or rider designed to provide coverage on an expense incurred (reimbursement) or indemnity basis for one or more necessary or medically necessary diagnostic, preventative, therapeutic, rehabilitative, maintenance or personal care services provided in a setting other than an acute care unit of a hospital. Long Term Care insurance does NOT require a prior hospital stay before benefits are paid and all policies that are sold today MUST, by law, pay benefits to patients for Alzheimer’s disease and dementia.

Now that we have distinguished Long Term care services from Long Term Care insurance we can talk about what happens when people do not plan for the possibility of Long Term Care.

Under Age 60
I am often asked who should be considering Long Term Care insurance? My response is anyone who is getting older. Intelligent, educated people who plan ahead realize that accidents and illness happens to young people as well as the aged. We all need to plan for Long Term health care just as we need to plan for the possibility of becoming disabled during our working years. When we are disabled our income stops but the mortgage or rent still need to be paid, as do utility and car payments. Disability income insurance provides the income to pay for these expenses. Long Term Care insurance pays for the CARE if we need it for an extended period of time. Our health insurance will pay the deductibles and co-pays, and cover the cost of prescription medications and hospital and doctor bills.

Those who are under age 591/2 who need Long Term health care and DO NOT have Long Term Care insurance will have to spend their savings, 401k and or IRA money to pay for care. Not only will those who fail to plan have to pay taxes on this money when it is withdrawn but they will also be forced to pay a 10% penalty for early withdrawal. People who need Long Term Care that do not have Long Term Care insurance may lose their retirement income forever! Think about it!

Another reason for younger people to consider Long Term Care insurance is to "guarantee insurability". If we are not insured and our health declines as is practically inevitable as we age we could be excluded from purchasing Long Term Care insurance.

I heard Jerry Mathers the Beaver From TV’s Leave it to Beaver speak on Sunday at the Alzheimer’s Association’s Chocolate Jubilee Fundraiser. He spoke about his father, age 79 who has had Alzheimer’s disease for many years. He was taking 2 medications for 5 or 6 years that seemed to help him. Then 7 months ago they stopped working. Today he is cared for in Jerry’s home. Between his mother, a brother and 3 sisters and 5 caregivers each day his dad receives the necessary care. Most people today are not able to provide this degree in their homes. This amount of care giving is overwhelmingly stressful on families and is often physically, emotionally and financially and devastating. Jerry’s father now suffers the loss of his independence and dignity. The entire family of 40 will be together for the holidays but as Jerry said " My father will be there, strapped in his wheelchair but he won’t know anyone. This country is in a medical crisis and the consequences to us as individuals and to our country as a whole will be grave if we do not prepare for the future."

Dorothy McMahon is a Long Term Care Insurance Specialist, a Certified Senior Advisor and President of McMahon and Associates. Call her at (800) 727-0045. She is available for group presentations.