The Long-term Care Dilemma

The Long-term Care Dilemma

When you spend your life building assets and preparing for the days of your retirement, you also need protect your hard work against potential dangers. Retirement for many is a period of time to enjoy the fruits of their labors. Vacations in Europe, visiting the children and grandchildren or relaxing on a secluded beach are all choices many look forward to after a lifetime of work. The ability to choose how to use your time is the dividend of hard work. One potential problem not considered is the potential cost and damage of long-term medical care to a well-planned life.

Most people are aware of their government benefits and the protections they provide. Social Security provides a guaranteed income and Medicare provides guaranteed health insurance. A large number of people assume these protections extend to long-term medical care costs. This mistake is devastating for many people. A lifetime of work and a lifetime of dreams could easily be destroyed in a few short years. The risk of entering a long-term care facility is greater then 50%. And the cost can be well over $50,000 per year.
 

To fully realize the dilemma at stake we first need to understand five factors that magnify the risk:

1. The aging of the US population is putting an ever-greater strain on what the government will pay for and long-term care. And those who have assets are not a major priority.

2. Advances in medical technology and availability of new medicines are allowing people to live longer then ever expected.

3. The costs of Long-term care are increasing as the federal government shifts recovery of illnesses to long-term care facilities from hospitals.

4. Changing demographics are altering the family structure the traditional security net for long-term medical care. Children are now in other states and countries with their own lives and families far removed from their parents.

5. Transferring assets in the hope of transferring the risk to Medicaid has many dangers. Including government audits going back up to 5 years with penalties. Along with government audits add the risk of divorce and bad investment decisions by those entrusted with your assets and idea of transferring becomes very risky.

A solution to this dilemma is to insure you against the risk. Long-term care Insurance will allow you to enjoy what you spent a lifetime accumulating without the risk and worry of long-term medical care. In short this is the dilemma facing an ever-larger group of Americans as the Baby boom generation is starting to enter retirement years. Putting off the risk only increases the potential damage.

For more detailed reasons to consider long-term care insurance please read
10 Reasons you should consider Long-term care insurance or call one of our consultants today.

Last Updated (Tuesday, 03 March 2009 12:05)

 
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