Delaying Long Term Care Planning Is Risky

If youre in 40s or middle age, you are surely thinking of the risks of not planning

for long term care today and you might as well frightened with the burden it could give to your loved ones. Whats ironic is people normally purchase life insurance to prepare for their death, but many overlooked planning for retirement.

There are about 10 million Americans experiencing limitations in basic daily activities such as bathing, eating, and dressing, according to 2003 National Academy of Social Insurance. The U.S Census Bureau also projected the population of older Americans age 65 and above will have increased to 87 million by 2050.

The most mindboggling problem everyone faces today is the flagrant realities of aging. Everyone fears of staying in nursing homes, but three out of five adults stay in nursing homes today. The prices for long term care services and facilities give so much weight to families, especially those who are trying to make ends meet. The Genworth Financial recently revealed that the annual cost of nursing homes averaged to $75,000, and the average stay of most residents is two years.

Many people rely on financial help from their families or loved ones. This often leaves both financial and emotional problems to the supporting family member/s, because they might be nudge to debt and impoverishment after paying for long term care services. Moreover, the 2003 report from Employer Benefit Research Institute reveals that in 2030 many retirees will earn less income or assets insufficient enough to cover long term care costs.

Long term care is not something to dawdle because long term care costs by state increase every year. Many people err of waiting for the age in time when certain serious illness or impairment arises, before they realize the need for long term care insurance. They thought that when they develop health condition they would save a lot from LTCi premiums, although, in reality, the older and less healthy individuals receive costlier premiums. According to Jesse Slome, executive director of AALTCI, premiums may increase up to 8 percent every year, he stressed, "If you can guarantee that two years from now you'll be in the same or better health, then by all means, invest the money and wait to buy your coverage."

There are lots of reason why you should not procrastinate and think of long term care plans today. The study released by America Talks: Protecting Our Families Financial Futures, sponsored by Genworth Financial, made excellent analysis that may prompt us to prepare for long term care:

Very small percentage of the projected population in need of long term care think they will need it at some point in the future

Only 10 percent are certain paying out-of-pocket for long term care

Most people want to receive care in their home instead of receiving it in a nursing home or assisted living facility

Most respondents concern is not being a burden to their families instead of protecting assets

It is not only the cost that hinders people from planning for long term care; it is the complexity that discourages people from getting coverage. They are torn as to how much and how long the coverage is needed, plus the numerous riders.

by: Jessica Martinez

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