It's a good bet that you'll live longer than previous generations in your family. But is it a good bet that you'll be able to afford those extra years?
That depends on how you plan for the future -- both the ordinary costs of living longer, and the extraordinary costs if you need care because of a physical or mental incapacity.
Americans are in denial about this oncoming crisis in costs of care. Maybe that's because we figure the government will come to our aid. Think again. Medicare only partially covers up to 100 days of skilled nursing care. State Medicaid programs will pay for your custodial care -- but only in Medicaid-funded nursing homes that are woefully under-funded.
Relying on Medicaid disqualifies the possibility of care at home or in an assisted living facility -- much more appealing choices. And you'd have those choices if you purchased long term care insurance as you reach age 50, when you are still young and healthy enough to qualify for the best policies at the lowest prices.
One critically important thing to keep in mind when purchasing long term care insurance is that before you can access the benefits, a licensed medical professional must "certify" that you need substantial assistance in performing at least two of six basic activities of daily living (such as dressing, bathing, toileting) or be "cognitively impaired" before the coverage will start paying your costs. You can't simply decide that it would be nice to move into an assisted living facility, and have your insurance pay the costs!
www.suntimes.com
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