What Good is Long Term Care Insurance?

I have heard countless horror stories about insurance. It seemed to be ubiquitous during the debate leading up to the passage of the new healthcare law. Insurance companies are out to get us! Evil corporations are profiteering on the misfortune of others!

Unfortunately, the positive aspects of being insured never receive the same fanfare as the tales of woe which are politically useful when public servants are attempting to push an agenda. I suppose they don't make for interesting news stories. "Stay tuned to hear about how a father purchased insurance for his family and then received the benefit to which he was entitled when his son broke his arm at a middle school soccer game." Next.

At Home Instead Senior Care, I have the opportunity to visit with families each day who are faced with the fiscal reality of what it takes to provide quality care for their aging parents. Most are thrust into being a family caregiver without any warning or forethought. They wake up at 3am to a phone call letting them know that their relationship to their parents has forever changed. They thought they had more time. Many have no plan in place. As a result, they will spend the years to come in a constant tug-o-war between the desire to give their parents the best care available and the financial reality of providing that care. Sacrifices will be made. Compromises will be agreed upon. Regrets will endure.

Other families will never face that music. They will likely wake to the same phone call at 3am. Their lives will probably also change with little or no warning. They also thought that they had more time. But they have a plan in place. Years ago, their parents saw the proverbial writing on the wall and purchased a Long Term Care Insurance(LTCI) policy for themselves. Their children will still work to give them the best care available but will never be forced to make the same heartbreaking decisions as others in similar situations. They will have tools and resources at their disposal as a result of their parents' foresight.

There are horror stories about every type of insurance policy not providing benefits in the way in which it was expected but those stories are the rare exception and not the rule. The reality is that most of us go through life paying for insurance policies which protect us against things from which we will likely never suffer.  Most people will live their lives without ever suffering a catastrophic injury or illness. And yet there is a tremendous sense of urgency to be insured 'just in case.' A LTCI Policy is the one type of policy that is not a 'just in case' arrangement. You will get older. You will need help. It is only a question of when. And when that time comes, how will your children provide for you?