Erma was absolutely right, in her marriage, she was the first to "stumble". She died at age 69 after an extended illness from complications of a kidney transplant.

Today more than 50% of us will need Long-Term Care during our lifetimes either in our homes or in a facility. Seven out of every ten couples can expect at least one partner to enter a nursing home after age 65. Why would anyone want to risk a couple of hundred thousand dollars for care when it is possible to purchase insurance for only a fraction of that amount? A survey conducted in the year 2000 says that two-thirds of Americans say they could not afford to pay for more than two years of care at a cost of $54,000 per year. The alternative to paying $54,000 per year is to pay insurance premiums of about $1500 to $2000 per year. Those who say they cannot afford those premiums may want to think again: it beats the alternative. Above and beyond the risk of asset loss is often the inability to access top quality care at the appropriate level.

There are only three ways to cover the financial exposure of Long-Term Health Care.

• If you are wealthy you can self-insure.
• If you are impoverished, you will qualify for Medicaid and the government may pay for your care.

For married couples, qualifying for Medicaid can be devastating for the community spouse (the spouse who is still at home). That spouse is left with little to survive on while trying to make sure the sick spouse gets necessary care. This situation is financially, physically and emotionally draining.

• A third choice is to transfer the risk to a highly rated financially sound insurance company.

Long-Term Care is one of four major financial risks all of us face. The four risks are; home fires, auto accidents, short-term medical care and Long-Term Health Care. The odds of our home burning down are 1 in 1200 and the most common deductible is about 500 or 1000 dollars. The odds of having an auto accident are 1 in 240 and this deductible is anywhere from 250 to 500 dollars. The odds of needing short-term medical care are about 1 in 5. This deductible for medical care could be anywhere from 100 to 1,000 dollars. The deductible for a person age 65 or over is 792 dollars in 2001.

Today the odds of a person over the age of 65 needing health care for an extended period of time either at home or in a facility are 57% and for working age adults age 18 to 64 there is a 43% risk. In both cases it is a risk most of us choose to ignore. We all think, "It won’t happen to me".

Seventy-six percent of retirees state that they do not expect to need Long-Term Health Care of any sort. The shocking reality is that AT LEAST 50% OF US WILL ENTER A NURSING HOME. Half of us will stay in a nursing home for more than two and one half years. However, the terms Long-Term Care and Nursing Home are not synonymous. Today’s Long-Term Care policies are actually designed to keep us out of a nursing home. ANY LEVEL OF CARE YOU COULD POSSIBLY NEED CAN BE RECEIVED IN YOUR OWN HOME. THIS IS THE BEAUTY OF LONG-TERM CARE INSURANCE. The average duration of Home Health Care is 4.5 years. Let’s be at home with our families!

Long-Term Care can be received in one or a combination of different settings. Some of these settings include: your own home, an Assisted living facility, Hospice Care Center, Alzheimer’s Facility, a Home for the Aged as well as Foster Care. Care could also be given in the home or community by a licensed Home Health Care Provider, in an Adult Day Care Center, and may include Respite Care. These types of care would be provided as professional or personal care. A nursing home is always the last choice.

Long Term Care Insurance, an Idea Whose Time Has Come.

Americans are finally beginning to realize what author Ken Dychtwald stated many years ago in his book "Age Wave"- that Long-Term Health care expenses are "the largest unfunded liability facing Americans today."

Here are some of the fundamental considerations when deciding upon a Long-Term Care policy. First consider the financial stability and ratings of the company that issues the policy. You should ask these questions:

• How long have the company and your agent been selling Long-Term Care Insurance?
• What is the company’s claim payment history?
• How committed to or "invested" is the company in the Long-Term Care Insurance market?
• Is the company whose policy you are considering buying other insurance companies or is it one that is being bought?

All of the policies have their own idiosyncrasies so it can be difficult to make an accurate comparison. Always work with a professional agent who specializes in Long-Term Care Insurance and preferably an independent agent who is not limited to one company. An independent agent can go to the marketplace and find the best policy for a particular situation.

The federal and state governments cannot deliver another entitlement program. Tax incentives are being provided to both businesses and individuals for the purchase of Long-Term Care insurance. When medical expenses exceed 7.5% of adjusted gross income for those who pay premiums out of pocket with after tax dollars the LTC premium is also tax deductible, according to a schedule based on age and premium amount. Long-Term Care Insurance premiums are also tax deductible to business owners as an ordinary business expense. Check with your tax advisor!