Welcome to fall in Vermont; the days are growing shorter, the air is crisp and the leaves are turning. I recently received an inquiry about the benefits and costs involved in having a Long Term Care (LTC) insurance policy.

Dear Grace,
I am in my early fifties and in fairly good health and physical condition. I’m all by myself and I worry about what will happen if I have a serious accident or illness. Should I buy long term care insurance?
George

Dear George,
There are many variables involved in a decision like this. My first piece of advice is to start gathering information and consult a good financial advisor. LTC plans are not cookie cutter policies; they’re designed specifically for each individual based on the services you want and what you can afford to pay. Keep in mind that a LTC policy shouldn’t cost more than 7% of your annual income.

Some benefits can include:
-Maintain your financial independence from family and friends; often eliminating the need to borrow money for long term care costs.

-Allow for in home professional care instead of depending on the help of family and friends.

-Allows you to choose where you receive your care (home, assisted living facility, nursing home)

There are some major illnesses that can prevent you from obtaining a LTC policy; however since you said you’re in good health that probably wouldn’t be an issue for you.

The younger and healthier you are, the lower the cost of the policies. One important thing to remember is; no matter how great the policy is or how much it will pay for long term care costs, if you can’t really afford the monthly payment, the policy is of no benefit to you. Take your time and make the right choice for your circumstances.

Sincerely,
Grace

If you have questions or are looking for information related to caring for an elder loved one or other individual with disabilities or health issues, please email me, deargrace@pibarre.org or write to Dear Grace, c/o Project Independence, 81 N. Nain St. – Ste. 1, Barre, VT 05641-4283