Long Term Health Care

May 24, 2008 by  
Filed under Articles, News

This is a portion of a good article on long term health care (LTHC) on Forbes.com (May 22,2008) under investments.

Long-term-care insurance may not be right for every situation. It may not be the answer for people who can rely on family members to provide care for them at home, says Michael Haubrich, a fee-only certified financial planner in Racine, Wis.

“Most of my clients have family members who are willing and able to assist in keeping them out of institutional care,” Haubrich explains. “In those cases, the most valuable asset is cash, not insurance. Having that cash will allow the family to be unconstrained by policy limitations that exclude payments to family members and unlicensed service providers.”

The flipside of this argument is that having long-term-care insurance alleviates the pressure on a spouse or family member to be the primary caregiver, says Don R. Campfield, the national sales director of Guardian’s long-term-care division. “This shifts the emotional burden,” he adds.

This is an interesting argument. My parents bought long term health care (LTHC) years ago because they did not want to be a burden. However, when they bought it people were not living as long. I have continually asked them to review the policy but they are convinced that it will meet their needs. Any of you who have looked into such policies know that they are expensive and they do not cover the length of time that many people spend with different illnesses and conditions. In an article in February, Forbes.com discussed some of the options for LTHC. I would love to hear your perspective on what policies and companies seemed best for your purposes.

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