LTCi should be purchased by those under the age of 79 who can comfortably afford the premiums, now and in the future, and by those who can qualify medically to obtain the coverage.

According to United Seniors Health Council, a nonprofit consumer group based in Washington, D.C. which has merged with the National Council on Aging, long-term care policies are most suitable for people who:

* Own assets of more than $75,000 (excluding home & car)
* Receive an annual retirement income of more than $25,000
* Can make the payments without changing their lifestyle
* Can still afford the premiums if they should rise by 30%

People who can't meet these guidelines most likely would have difficulty paying for the policy over time. However, in some instances, family members might want to consider purchasing the policy as a protection against the high financial and emotional cost of caring for an elderly relative.

Since LTCi is medically underwritten, a medical history and current health status are important parts of the application process. While many health conditions are acceptable, those where predictably LTC would be needed, are excluded. Examples are memory loss, Alzheimer's, Parkinson's, stroke, and other neurological conditions.

The biggest mistake people make is waiting to obtain coverage. Twenty-four hours from now, a change in your health status could make it impossible to obtain LTCi protection.

Having a LTCi policy in place not only protects assets, but perhaps even more importantly, provides you and your family with more options for quality care. You will have access to your preferred setting for care, plus the security and peace of mind knowing care will be paid for.

WHEN SHOULD I PURCHASE LONG-TERM CARE INSURANCE?

The consumer organizations say, "LTCi should be purchased as soon as you recognize the need." People recognize the need at different ages and different stages of their life, mainly depending upon their exposure to long-term care experiences. Eventually, LTC will touch every family in a variety of ways. Most reality-oriented people recognize that if they live long enough, they too, will need LTC.

Ideally, LTCi should be purchased as soon as you can comfortably afford the premium and before you develop a medical condition prohibiting coverage. Did you know that some 40% of people needing LTC services are working adults between the ages of 18-64? (America's Health Insurance Plans "Guide to LTCi," 2004)

Clearly, we are seeing a trend of younger people in their 40's coming to us because they are better educated and aware of the necessity for future planning. Coverage is less expensive if you purchase a policy when you're young and healthy. There are preferred health discounts and other incentives for younger buyers, including attractive payment options. More LTCi is available in the workplace. However, accurate comparisons should be made between a work-related LTCi benefit and products in the open market.

For more information about comparing a work-related LTCi benefit with the open market, Contact Us.

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