Small Business Boomers

If you are at the upper end of the Baby Boomer spectrum (late 50s/early 60s) you may have considered long term care insurance. My husband and I have talked about it, and as we enter our 60s, we wonder if we should get it. So, for me and for you, I did some research. Over the next few days, I will discuss the pro’s and con’s of long term care insurance. I will show you what I found, give you some information, and let you make your own decisions.

First, a couple of basics:

• The coverage you buy is only as good as the insurance company. And we all know they aren’t that great any more. So only buy coverage from a top-rated insurance company. Check out insurance company ratings on AM Best or S&P. I would only consider companies that are rated Superior (A++ or A+) or Excellent (A or A-).

• The longer you wait, the older you are, and the more expensive the coverage, and the greater your risk of not getting coverage at all. That’s the way insurance works. You can’t buy it after you decide you need it. That’s why I’m looking now rather than later.
• The more you can pay yourself, the lower your premium will be. For example, if you have enough money to pay for a 90-day benefit waiting period, you can substantially reduce your costs.
• Consider inflation. An inflation-protected policy costs more, but it will give you protection against increased costs. Which is more important – lower premiums or increased inflation protection?
• If pre-existing conditions are covered, the premium will be much higher. This would include diabetes, heart disease, and other chronic illnesses.

  Next, you should know what Medicare does and doesn’t pay. I’ll let you know what I found by experience with my mother and my mother-in-law, and I’ll give you the basics of Medicare….

  Take this quiz on long-term care from AARP, to test your knowledge of long term care.

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