The Myths about Long-Term Care (Part One)

By Debbie Engebretsen, New York Life, Salt Lake City LIVING WELL Magazine

Long-term care issues have been everywhere in the news lately – from stories of people needing these services to how the government is responding. But there is also a lot of conflicting, and even mistaken, information. Misconceptions may have prevented you from including long-term care planning into your retirement portfolio. But long-term care planning can be a critical component to any comprehensive retirement plan. So now is the time to dispel these myths. Check back with us in the next issue, where we’ll dispel more long-term care planning myths.

Myth #1: I’ll never need long-term care.

Most people can’t imagine themselves needing long-term care services. But, the U.S. Department of Health and Human Services indicates that people age 65 face at least a 40% lifetime risk of entering a nursing home sometime during their lifetime[1]. Living a long life may increase your risk of needing long-term care. Isn’t it better to insure against what that risk may do to your family and your financial plans?

Myth #2: Long-term care is only for the elderly.

Actually, a surprising amount of long-term care services are provided to younger people. The U.S. Government Accountability Office estimates that 40% of 13 million people receiving long-term care services are between the ages 18 and 64[2]. The unexpected need for long-term care could arise at any age for any number of reasons, including illness, or an accident.

Myth #3: I’ll pay for my own long-term care.

In 2008, nursing home costs averaged over $76,400 a year nationally, but in some regions these costs are sometimes twice that amount[3]. How long can you pay for these expenses without jeopardizing your financial plan or exhausting your savings? It may make good sense to transfer this financial risk just like you do with your homeowner’s insurance or auto insurance. Even if you can afford to pay for long-term care services out of pocket, why would you want to when you can transfer the cost to an insurer for premiums that may total a fraction of the cost of care?

With long life comes long-term planning. Make a plan for you and your family today. For more information on long-term care insurance, please contact Debbie Engebretsen, Agent, New York Life Insurance Company at 801-318-2749.

The purpose of this piece is solicitation of insurance.  An insurance producer (agent) may contact you.  New York Life Insurance Company long-term care insurance is issued on policy form series ILTC-5000 and INH-5000 with a state identifier and edition date.  Example: Examples: for Idaho ILTC-5000 (ID) (1001) and INH-5000 (ID) (1001) and for North Carolina ILTC-5000 (NC) (1001) (Rev. 0606) and INH-5000 (NC) (1001) (Rev. 0606) and for Pennsylvania ILTC-5000 (PA) (1001), FLTC-5000 MLP (PA) (0503), for Tennessee ILTC-5000 (TN) (1001) and INH-5000 (TN) (1001) and for Texas ILTC-5000 (TX) (0305) and INH-5000 (TX) (0305).  New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010.