Long Term Care Insurance
This week I had a visit from an insurance agent selling long
term care insurance. When she first called, I
specifically asked her if I could insure a family member living
in a different state. I was told no problem.
Be sure to take a look at a response I
received from a reader posted just below the
Now this company only deals with long term care insurance
not health insurance or life insurance. They are
specialists who know who they can insure and who they will lose
If you have a heart condition, no
problem on getting the insurance because most heart conditions
lead to death in a very short time. On the other hand, if
you have diabetes they will not insure you (based on what type
of treatment you are currently under) because your disease can
take years to kill you with multiple amputations in the
If you have two conditions you probably will not get the
insurance. If your condition has been diagnosed as fatal,
you probably will not get the insurance without a much higher
premium or you can elect to take sort of a supplemental policy
that provides a care giver when hospice is not at the
home. The obvious time to get this insurance is before
any detrimental diagnoses are out there. The cost to
insure both myself and my husband was only $113 a month.
The cost for us to insure my mother-in-law (who currently
has leukemia) would be only $118 a month for $100 a day care.
That is not bad.
Why did we not buy the insurance? We would have to lie
on the application stating that his mother was currently
staying with us and forge her name and call her and tell her to
lie when the insurance company called to confirm. This
information was accompanied with broad winks from the
agent. Yes you can insure someone living in another
state, but first they have to be staying with you and then
Although she has stayed with us in the past, she is not
currently here nor will she be here this year.
For the sake of argument, say I was willing to lie. On
review of claims, if false information was given, the claim can
be denied and all monthly premiums would be forfeit. If you
have to lie to get a long term care policy, what are the odds
that that lie would bounce back and bite you. There is a big
rush to get her insured before there is a terminal
In my opinion, insurance is a necessary
evil. Car insurance is required by law. Life insurance is
based on a guilt trip if you don't leave money to your children
or spouse. Yes I know, enough money for the children to go to
college and pay off all the existing bills including the home
and leave the surviving spouse without any financial worries.
Oh yes and you can even buy a burial policy to provide for
Excuse me but health insurance is a farce - don't even go
there. Now we have long term care insurance.
The government is encouraging all of us to invest in this
insurance because we all know that Medicare and social security
will not give us much of a retirement. Because our health is at
an all time low, we need to look at the possibility of needing
The fact is that now conventional medicine can keep you
alive in circumstances that just a few years ago would have put
you in your grave. This has nothing to do with the quality of
life only life itself.
We have to look at the possibility of needing long term care
not only for ourselves but our parents and our children.
How many of us live close enough to our parents to provide
in-home care? How many of us would have to give up a job
in order to provide that care? How many of us could
afford to give up that job?
If your Mom or Dad develops Alzheimer's, how will you
provide for them. Do they have their own long term care
insurance? Who will watch over them while you are at
work? Will you be forced to put them in a "home" and who
will pay for that - not Medicare or Medicaid.
What are the alternatives to paying for a long term care
policy? The most obvious is to either get healthy or
maintain your health with proper diet exercise and stress
But what happens if the gremlins pop up and put you in a car
accident that doesn't kill you but requires months of
rehabilitation. Oh, easy answer - car insurance and
lawsuits. Maybe, but what about the people who are
driving without insurance and don't think for a moment that
they don't exist. I was rear ended by one. Sure,
she was fined but that left the repairs to my insurance company
who raised my rates. Read the not so fine print on your
auto policy - there is a limit to how much they will pay on a
Do you take that monthly premium amount of $120 and put it
in savings? That is only $1,440 a year and long term care
will take that much in a month. Do you invest that money
in the stock market? That is a whole new subject I am not
qualified in the least to discuss.
What is the answer? Answers - as individual as you are
and your circumstances are. For many of us a long term
care insurance policy will be the answer. Some will do
nothing and let the chips fall where they may. The bottom
line of any insurance is that the company is betting you won't
be able to collect and you are betting that you will.
I had this response from one of my
There are some long term care policies that will allow someone
from another state (e.g. your mother) to be covered under your
policy. You would not need to lie about her true state of
residence. The agent selling the policy would only need to be
licensed in your state.
But, the simplest solution to your problem would be to work
with an agent who is licensed in your state AND your mother's
state. That agent could sell a policy for you and a policy for
your mother. Depending upon the company, you might even be able
to get a discount on each policy for buying more than one
Lastly, anyone who is currently diagnosed with leukemia would
not be able to qualify for a long term care insurance policy.
In fact, anyone who is currently being treated for any type of
cancer would not be able to qualify for a long term care
insurance policy until the treatments were finished and the
person was cancer-free. Depending upon the type of cancer, the
cancer survivor would have to be cancer-free for at least 3
months (i.e. in the case of prostate cancer) or as long as 24
months or more.
Scott A. Olson, CLTC
Posted by Scott A Olson, CLTC to Natural Health from
Answers For Your Health at 12:18 PM