Why Do People Buy Long Term Care Insurance?

by Duane Lipham - Date: 2006-12-23 - Word Count: 518 Share This!

There are actually several reasons why people buy LTCi and what matters most to them in the decision making process actually depends on their individual situation. Many times several factors influence their thinking, but here are some of the most common reasons that people invest in LTCi:

To protect their family - Many people realize that if they have a family that loves them, they will be sure to be cared for somehow in the case of a prolonged illness that requires custodial care. However, they are concerned about the kind of burden will that place on their loved ones, both emotionally and financially. Especially those who have had prior experiences with being a caregiver realize how difficult it is, and they choose to do all that they can to prevent that if they have the means to do so.

To protect their finances - Well-informed and financially savvy people understand the dangers that a long term care illness can present to their portfolio. In fact, paying for long term care costs is the single largest contributor to financial ruin in the senior population. Realizing that LTCi allows them to leverage their insurance investment (essentially buying benefits worth many times more than the investment made) and protect their assets from disaster, they view LTCi as a necessity, not an option.

To maintain independence - The very last thing that many people would choose to give up is their own personal independence and freedom of choice. Many understand however, that if they don't plan ahead, that is exactly what they will most likely lose if a need for long term care arises. Having LTCi provides the financial means necessary to maintain control over your care and lifestyle. This is often a major factor when single persons choose to invest in LTCi.

To have more control over the quality of their care - In the United States no one will be turned away and refused long term care if it is truly needed, regardless of their financial situation. The program that usually makes arrangements for their care is Medicaid, a joint collaboration between federal and state governments to care for those who do not have assets enough to care for themselves. Although it is a wonderful program in many ways, the care that is provided is of much less quality than that received by those with private funding and is most often only provided in a facility. Many people who have witnessed firsthand the shortcomings and frustrations of Medicaid-provided care simply choose to do all that they can to avoid such an outcome.

To protect their children's inheritance - Since long term care costs are so high and rising much faster than the standard rate of inflation, many people appreciate that an extended long term care episode would essentially wipe out all the savings that they have worked so hard to obtain through the years, and leave virtually nothing for their offspring. If leaving a heritage to their family is important to them, they see LTCi as a way to make sure that the fruits of their labors are passed on to the next generation.

Related Tags: health care, aging, elder care, long term care, nursing home


Duane Lipham is a Certified Long Term Care(CLTC) consultant. You can get more free information, news and articles regarding long term care and aging at The Long Term Care Consumer Guide website and The Long Term Care Review Blog.

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