IQ expert Dr. Marion Somers: As population grows older, long-term care insurance changes
Q: Since Americans are living longer, what changes are being made in long-term care insurance to make sure people’s needs are met as they advance in years?
| Dr. Marion Somers: In the Long Term |
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| Dr. Marion Somers is the author of “Elder Care Made Easier: Doctor Marion’s 10 Steps to Help You Care for an Aging Loved One.” |
A: Thanks to both medical advances and lifestyle changes, people are living longer. According to statistics, the number of people over age 65 is expected to double by the year 2050. And the fastest-growing segment of this population is the over-80 group.
While this longevity is wonderful, it also means that the older you are, the more likely you are to develop a chronic disease that may cause you to require long-term care. Past generations relied on younger family members to take care of them in their aging years. However, recent generations may live far away from their parents or may not have the capacity to care for their parents. Also, the potential costs of long-term care have grown. This is why long-term care insurance has seen a growth in popularity.
Changes have been made to ensure that more people will be able to pay for long-term care if they need it.
One of these changes is the introduction of combo products: life insurance policies or annuities that also can be used to cover nursing home or home care expenses. A main benefit of these policies is that any money in the account that is not used can be passed on heirs after the policyholder has died. This is in contrast to traditional long-term care insurance, whose premiums are paid whether you need care or not.
However, these combo policies are more expensive than traditional life insurance, and the payout amounts are limited. Depending on the level of care you may need, the payout might not be enough to meet your long-term care needs. The increased need for long-term care has also prompted changes at the federal level, including the CLASS Act.
Now, long-term care insurance policies also provide many options to meet many levels of need at a variety of price points, so make sure you understand all of your available options. Variables include:
• The level of inflation protection.
• The daily benefit amount.
• The benefit period (how long your benefits will be paid).
• The elimination period (the waiting period before your benefits start).
• The settings covered (assisted living, nursing homes, home care).
• Renewability.
• Premium increases.
Dr. Marion Somers, Ph.D., has more than 40 years of experience as a geriatric care manager and caregiver, and as an author, speaker and teacher regarding elder care and other elder issues. With the senior generation living longer than ever before, Dr. Marion believes we are on the verge of an “elder care tsunami.” After decades of working directly with seniors and their caregivers, Dr. Marion launched a public effort to provide practical tools, solutions and advice to those struggling with caring for our aging population. She is the author of “Elder Care Made Easier: Doctor Marion’s 10 Steps to Help You Care for an Aging Loved One” and creator of two iPhone apps: Elder411 and Elder911.
For more information, visit www.drmarion.com.
If you have a long-term care insurance question for Dr. Marion Somers, please send it to john.egan@insurancequotes.com.
