Risk & Business Magazine Walsh Duffield Companies Fall 2016 | Page 31

LONG TERM CARE BY: MICHAEL GODSHAW, VICE PRESIDENT & DIRECTOR, INDIVIDUAL BENEFITS DIVISION [email protected] 716-362-7335 Five Myths About Long Term Care Insurance What You Need To Know L ong Term Care (LTC) insurance is one way to access the help you need, protect your assets, and enjoy peace of mind. The average cost of a private room in a nursing home in Western New York is over $120,000. A home health aide has an average cost of about half of that figure. Understandably, these figures do not paint a pretty picture for individuals who need to get their loved ones the care that they need while still maintaining their own financial security. That is where LTC insurance shines. It helps cover situations in a financial landscape that can have dramatic ups and downs. When it comes to this kind of coverage, however, misunderstandings abound. Here’s a look at five common myths— and the fact behind the fiction: MYTH #1: MEDICARE WILL COVER LTC COSTS. In actuality, there may be very limited Medicare coverage for LTC benefits. Medicare generally pays for doctors and hospitals but not “custodial care,” which includes support services for daily activities, like dressing, bathing, and using the bathroom. MYTH #2: PREMIUMS WON’T EVER GO UP. Insurance companies cannot increase premiums based on your health or claims, but they can increase them for a whole class of policyholders. An example of this would be all policies issued in a given year. MYTH #3: I DON’T NEED TO BUY LTC INSURANCE UNTIL I RETIRE. By the time an individual retires, “DON’T WAIT TO FIND OUT WHAT YOU NEED TO DO FOR YOUR FUTURE CARE OR THE FUTURE CARE OF YOUR LOVED ONES.” they’ve typically developed conditions, such as diabetes, that can lead to higher premiums or make them ineligible for coverage. So it’s wise to purchase coverage around age fifty. MYTH #4: LTC INSURANCE IS ONLY FOR NURSING HOME CARE. LTC insurance can cover in-home care and private nurses; visiting or live-in companions, housekeepers, and therapists; hospice care; and more. According to the American Association for Long Term Care Insurance, 50 percent of claims in 2011 were for home care compared to only 31 percent for care in nursing homes. MYTH #5: THE ONLY WAY TO PROTECT MY ASSETS IS BY GIFTING. If you purchase an LTC policy approved by the New York State Partnership for Long-Term Care (Partnership), you may be eligible for the Partnership’s Total Asset Protection plan, which protects your assets. Don’t wait to find out what you need to do for your future care or the future care of your loved ones. Fine out what LTC insurance can do for you. For more information on LTC policies, contact Michael Godshaw at 716-362-7335 or [email protected]. + Michael has over 40 years of experience in insurance, with a focus on individual benefits such as personal finance and estate planning, as well as business key person, perpetuation needs and executive benefits. Michael served as President of the Financial Planning Counselors of WNY. FALL 2016 | 31