Financial Crisis Looming
By Doug Worman

Self-insuring Time Bomb

Just because you don't want to talk about it, "doesn't mean it isn't there". It's there and it is not going away. I don't like to dwell on a lot of statistics, but more of my experiences. What I am seeing is that there are more people needing long-term care than ever before. Why? We are blessed with an opportunity to live longer lives than ever before. Unfortunately, a statistic that cannot be ignored is that according the American Society on Aging 70% of people turning 65 will need some type of long-term care. The other, which I feel, is virtually unknown is that 70% of all married couples will have one partner need care. This one is the most compelling in my opinion because some married couples are living on a "hope and a prayer". What I have witnessed is that some married couples have decided to "self-insure" meaning they will be their own insurance company and pay the bill out of their own pockets. The sad truth is this: You can't take a couples liquid assets and divide them evenly "down the middle" so that one partner gets 50% and the other 50% because in all my years I have never seen both people need the same exact care for the same length of time. One will need more care than the other will. (Example-couple has worked to accumulate $300,000. One of them is stricken with an illness or accident that takes their "nest egg" down to $50,000. Now the surviving spouse hopes he or she doesn't outlive the remaining "nest egg". Therein lies the sad untold story that is played out repeatedly. Before you ask, "what is the total amount (assets) that a person should self insure"? That's another discussion for another time, but what I have found is that is regardless of a person's wealth it is a personal decision as to what they would like to do with their money. (I have a client that plans to leave $250,000 to his local SPCA, because of his late wife wishes). To each his own. I know that in my mother's case her $15,000 savings was just as important to her as $100,000 is to someone else. She wanted her grandkids to have it!

Two Delays

"There are two delays that are affecting most people when it comes to dealing with their long-term care dilemma. One is human nature. "I don't want to talk about it (now)." Or some have the mindset "it's not going to happen to me". Unfortunately, with all of us living longer there is likelihood we will all need some type of care. (It doesn't always means an illness or accident either; I have people that have "just worn out"). It seems that some people in their 50's and early 60's want to "roll the dice" and "gamble". This leads me to the delay that is truly sad. By delaying their decision concerning finding out their options (on their terms), when they do have a health change (and most of us do) they then decide, "We better find out what we can do" and the result, it is too late. Delay has now turned into DENIAL. They are denied coverage because in all honestly, when they were healthy they did not want to talk about it (on their terms), now that they have health issues, and they are looking for (any) answers and panicking." It is very sad.

It's always about you.

To be perfectly blunt, this really is not about you. It's about your family and how your care will affect them emotionally, physically, and financially. Long-term care changes everyone's lives that it touches. The best thing that you can do for your family is find out your options concerning long-term care insurance.

Long-Term care insurance can be summed up best in one word. CHOICE. There are really only two choices in handling paying for long-term care. Pay it yourself (self-insure) or have an insurance company pay most or all of the expenses.

By having long-term care protection, you will have:

. The choice to remain independent and receive care in your home.
. The choice not to burden your spouse and families with the emotional, physical, and financial responsibility of your care.
. The choice to keep your assets and receive quality care.

One last thought. Long-Term Care protection will not keep you from getting sick or injured. It will however, help you enjoy this wonderful opportunity we have been given.to live a long life, worry-free.

Doug Worman has been a Long-term Care Insurance Specialist for the past 30 years. He represents all the insurers of long-term care. He offers a FREE PROGRAM to clubs and organizations, "The Problems and Concerns of Needing Long Term Care". One organization after hearing the program wrote, "It was the most informative and entertaining program concerning long-term care we have ever heard". Additional references are available. Call 1-800-929-2602 or email namrow@comcast.net for more information. Visit http://www.ltcinshelp.com.

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