Personal Story on Long Term Care Insurance
Previously, I had written a piece on Long Term Care Insurance. As I stated then, I’ve been fortunate enough to not had any family members that have had an extended stay in a nursing home. According to the percentages, my family is very blessed. One of my clients hasn’t been so lucky. His father has been in assisted living for many years now. Knowing that this father had taken out a long term care insurance policy, I asked him to share the details on what that policy has done for their father. Here is his story:
One of His Best Purchases
In his late 60’s, my father, a widower, purchased a modest LTC Insurance package with 2 years of benefits @ $75 a day. At that time, dad was in perfect health with low cholesterol and low blood pressure. He was a non-smoker, not obese and physically active. His family medical history was great.
It’s amazing that the father had the foresight to do this. Most people don’t purchase long term care insurance because they are in good health. Often times referred to the “Superman syndrome”, we never think we are going to get sick.
It’s Too Expensive
Later, at the age of 81, dad wanted to cancel the policy because he thought the premiums were too high, and the expense was too much. My sister and I pointed out to him that his family lives a long time and even though he was still in very good health, that in his later years he may need these benefits. He reluctantly agreed to keep the policy. Three years later, dementia required Dad to enter an Assisted Living Program for 6 months followed by a Nursing facility when assisted living failed to provide the level of care that he then needed. This policy has provided most, but not all of his care, in these two facilities and helped our family, with the assistance of an elder law attorney, to financially protect much of his estate if he continues to live several more years. Our only regret is that we did not encourage our father to get a policy with a larger per diem benefit, and a term longer than 2 years.
In the state of Illinois, Assisted Living average cost is $35,472 per year. In larger metropolitan areas, that cost can soar to more than $54,000. Long term care insurance should be considered for any portfolio. In my clients case, they are very fortunate to have had it. That insurance is still currently making those payments and not draining the father’s investment portfolio. Having the policy has at least eased the financial burden of having to continually pay the long term care costs.
photo by _SiD_
Securities and Insurance offered through LPL Financial, Member FINRA/SIPC
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