Too often when I sit down with a perspective client I found out that there is still too much confusion about the subject of Long-Term Care Insurance. I thought this was a good opportunity to dispel a few commons "myths" that I keep hearing.

MEDICARE WILL PAY FOR LONG-TERM CARE …. SO I DON'T NEED TO BUY A POLICY.
Medicare is designed to protect people from the expensive cost of Hospital and Doctor bills as well as testing and lab work. It was never intended to pay for Long-Term Care expenses. It does, however, cover the first 20 days if you need SKILLED care in a Nursing Home. If you have a Medicare Supplement, the Supplement will pick up the next 80 days, also for SKILLED care only. After 100 days and ALL care in an Assisted Living Facility is NOT COVERED. The primary focus of Medicare is to replace what used to be Major Medical coverage prior to age 65.

I WOULD LIKE TO CONSIDER A LONG-TERM CARE POLICY, BUT IS TOO COMPLICATED.
I thoroughly understand this comment, but it doesn't have to be complicated. If you try to do all the work and research yourself, it is very complicated. But if you are smart and seek out a Specialist, someone who represents many companies---someone who can save you time and provide the comparisons for you, it can become much less frustrating. It becomes an educational process based on much training and a real informational session for you. It is so much easier to make a good decision based on thorough explanation.

I AM TOO OLD…I SHOULD HAVE BOUGHT IT EARLIER.
Well, you are right..you should have bought it earlier, but NOW is still a good time. Yes, the older you are the more expensive it is, but you have to understand that you will not pay the premium as long either, and that is how the premiums are based. The "Waiver of Premium" provision ceases the premiums a short time after you qualify for benefits, so sometimes you only pay the premium a year or two and then you have a claim. At that point you won't pay any more premiums while you are in claim (depending on your elimination period).

THE PREMIUMS ARE TOO EXPENSIVE.
All companies charge different amounts for coverage, and the benefits are different also. Most companies have varied underwriting risk decisions based on their experience, and therefore it pays to shop around. Don't assume that because you have a quote from "ABC" company, that the same coverage will cost the same with every company. It is simply not true. In most cases, if you shop around, you can find an affordable premium.

IT WILL NEVER HAPPEN TO ME.
Unfortunately that is not something to guess about. The Federal Government just added a LTC benefit to their benefit package. Now, they are not financing it, but they are endorsing the idea of it by adding it to the employee benefit choices. This is a very important message to America. Purchasing Long-Term Care Insurance is a very logical, prudent choice. The published statistics are real. 1 in 2 people over the age of 65 WILL use a Long-Term Care policy for some time. Do not hesitate to check into this coverage. It makes good financial sense.