It is a question that deserves an honest answer, and dialogue.  When should you look seriously at long-term care insurance?  And should you even look?  What got me thinking about this was an article on the US News and Report blog about the topic here.

Should You Buy Long Term Care Insurance At All?

It depends on your net worth.  Consumer Reports suggests that folks with $200,000 to $2 million in net worth are a good fit for long term care.  The wisdom on the street, where I spend my days, suggests it is more like folks with $50,000 and up considering long-term care insurance.  The peace of mind one gets from having an LTC policy cannot be ignored, nor can the costs of premiums.  At CoverageNet, we tailor long term care policies to fit a variety of budgets.  Another Long-Term care brokerage, LTCtree, has served thousands of clients in making long term care insurance decisions and advises some good ways to save on long term care insurance premiums.  The bottom line is, don’t put yourself in a box when considering long-term care insurance.

Back To Age: When’s The Best Age To Apply?

The year before you need the policy is the best time to apply, assuming you can qualify.  I jest, but the fact is, long-term care insurance is something that should be considered when you are at the peak of good health.  The difference between being insurable and not is only a doctor’s visit away.  The general rule is that the 50’s are a good time to look, though more and more people are buying as early as their late 30’s.

Indeed, Health is Key.

If you look at the numbers, you’ll find that waiting five years, premiums may increase only 20%.  However, the differences in health will raise your rates anywhere from 10% to 70%.  In fact, the highest rate classes are cost prohibitive to the point where very few applicants take a policy once placed in the lower rate classes.

You Know Your Family History Best

The best place to make decisions about long-term care insurance is at the family reunion.  Look at your relatives.  Do they play golf into their 90s, or is the family reunion actually held at the assisted living facility?

Many times a day, we hear the confusion of consumers who are expecting “universal health care” to be passed into law in the United States and who wrongly believe that UHC will pay for long-term care.  While some of these assumptions are true, I think it is fair to look at our neighbor to the north, Canada, to see how a single-payer health care system would play out in the US.

Provincial health care programs and employee benefits may not cover the full costs of a long term illness. That means your choice of care could be limited. LTCI can supplement government-sponsored programs and reduce the worry of protecting your assets and your choices. It can provide the funds to pay for the care you may need, give you options, and keep a long term illness from becoming a financial and physical burden on your family.

- Ang Perodilo Newspaper

So to those considering not getting a long-term care insurance plan, we would urge you to look again, for even under the most liberal of governments, long-term care is still an individual matter in many ways.

I recently read that two ways to pay for long term care are becoming front and center for many baby boomers, who are seeing or have already seen their parents struggle with long term care situations.  The options of a reverse mortgage and long-term care insurance are both very popular ways to finance the expense of long term care.

Figures range from $100 to $400 per day for long term care, depending on what is being provided.  Many Americans will use their policies for home health care, which is the least costly option usually, but is also the least intensive.  Next comes assisted living, which is of course a more intensive plan of care and is for folks with more serious conditions.

A reverse mortgage is just what you’d expect it to be… rather than pay the bank, the bank pays you!  Reverse mortgages are generally available to those 62 or older in the U.S.  The money can be paid in a lump sum, but is usually paid in small monthly increments.  Of course, as time goes on, the bank will have more and more of the equity in your home.  For seniors, this may be okay.  However, it does leave one less asset that  folks can leave for their children.

With half of those over the age of 65 expected to need long term care in the future, the numbers are staggering.  Many boomers don’t want to saddle their children with the worry and expense of caring for them as they age.  Reverse mortgages may indeed be one effective way to accomplish paying the heavy toll of long term care.

In addition to reverse mortgages, you’ll probably want to consider a long-term care insurance policy.  With this coverage, which costs a few thousand dollars a year, depending on your current age and health, you begin to make the investment necessary to protect your children in the future.

Cornerstone Advantage is the newest long-term care insurance offering by Genworth Financial and AARP. The biggest drawback about Cornerstone Advantage is that it has limited benefits compared to, say, Privileged Choice or Classic Select (both Genworth products as well). Let me elaborate.
With Cornerstone Advantage, you do have the positive features such as coverage for long-term care at home, in an assisted living facility or even in a nursing home. As our statistics show, only 12% of claims are paid for nursing homes, and we think this is important for consumers to know. Long-term care insurance is not “nursing home insurance” anymore!

Specifics on Cornerstone Advantage

So I decided to look into some specifics on Policy Form Series 7048, I.E. Cornerstone Advantage. One key disclaimer that pops out immediately is the fact that Assisted Living Facility rent, room and board is available only as a rider for Cornerstone Advantage. Make sure you keep this in mind if you are considering this coverage! The plan has many advantages and disadvantages, depending on your needs. If you are considering the coverage, continue reading for further analysis on CA.

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