Senior Signals: The cost of getting older

One of the biggest questions people have is whether or not to buy long-term care insurance. Now, even if you want it, you may not be able to get it because many companies are refusing to write new, individual policies. Long-term care insurance is appealing because Medicare won’t pay for things like extended stays in nursing homes or assisted living facilities. It only pays for skilled nursing care. Medicare also does not pay for in-home care like personal assistants who assist with dressing or cooking.

One drawback of long-term care insurance is that premiums can be extremely high. Not everyone will need the level of care covered by a long-term care policy. There are a few lucky ones who manage to escape lengthy long-term illnesses.

So what should one do?

The first thing to do is to review your family’s medical history. According to an article in the New York Times, there is a 50 percent greater risk of contracting the disease of Alzheimer’s if your mother (not your father) had it, than in the general public.

For others, without such a family history of extended final illnesses, here are some questions one should consider.

What is covered?

Make sure the policy covers different types of facilities, not just one type. In other words, you want it to cover nursing homes, assisted living facilities, as well as adult day-care and hospices.

Also, know what kind of providers are acceptable for in-home services. Must they be certified or can they have just had some on-the-job training?

How is eligibility determined?

Some policies require the recipient to be unable to perform six activities of daily living before coverage kicks in. Others require that they only be unable to perform three (things such as eating, bathing, etc.)

When is it cost-effective to purchase coverage?

It’s probably a better deal to purchase long-term care insurance when one is in one’s 50’s. If one waits until they are in their 70’s, the premiums may outweigh the possible yield in payments.

All these things need to be considered when purchasing a long-term care insurance policy. If the policy is broad enough to allow for a range of future health scenarios as the individual ages, it can be a valuable tool to finance long-term care.

Attorney Daniel O. Tully is a partner in the law firm of Kilbourne & Tully, P.C., members of the National Academy of Elder Law Attorneys Inc., with offices at 120 Laurel St., Bristol (860) 583-1341.