How to Financially Prepare for Living Too Long

Provided By: Robert Stolz, Northwestern Long Term Care Insurance Company

If you ask people, many of them will tell you that they are not afraid of dying so much as they may be afraid of living too long. No one looks forward to the time when you are very much alive, but cannot care for yourself. When that time comes, your ability to live as good a life as physically possible will depend on what preparations you make today. Exercise, eat right, stay mentally fit and financially prepared.

People are living longer, which dramatically increases the odds of developing a chronic illness that could require on-going care. The U.S. Department of Health and Human Services reports that people who reach age 65 will have a 70 percent chance of needing nursing home level of care.¹ When the day comes that you are unable to do such basic things as dress yourself, get in and out of bed, eat a meal or go to the bathroom alone, you need to be prepared for the costs of paying professional caregivers for the help you need.

As health care costs escalate, an increasing number of people are protecting themselves by purchasing long-term care insurance, which typically covers some or all of the costs of care associated with a chronic illness such as Alzheimer’s disease. And today, those costs can be overwhelming.² Though Medicare does cover skilled care for acute conditions such as heart attacks and broken bones, in general, it does not cover the custodial care required for chronic medical conditions.

1. U.S. Department of Health and Human Services, Administration on Aging, 2008
2. Northwestern Long Term Care Cost of Care Survey, November 2008. Long Term Care Group, Inc. www.nmfn.com/tn/learnctr-studiesreports-cost_ltc

When making your plans for a secure retirement, it’s important to consider long-term care insurance as a way of protecting your assets so they won’t be exhausted by possible care costs.

Premiums will be lower if you buy long-term care insurance while in your 40s or 50s, instead of waiting until after you retire and face the health problems that often accompany aging.

There are quite a few factors to consider when choosing a long-term care insurance policy.

You will need to ask: when will benefits begin? How much money will I receive? What types of services will the policy pay for and for how long? How much does this type of insurance cost?

For this reason, it’s important to work with a financial professional who understands your needs, and who can design a plan that fits your needs. It’s also important to look at the track record of the company providing the insurance. To ensure that coverage will be there when you need it most, make sure the company is well established with a solid history of treating its policyholders well, and choose a company that has been given the highest possible ratings for financial security from insurance rating agencies.

Long-term care insurance can give you options on how you receive the care you need and where. It gives you choices about how your final years are lived and where. Maybe, such an insurance policy can even reduce the fear of living too long.

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Article prepared by Northwestern Long Term Care Insurance Co. with the cooperation of Robert Stolz. Robert Stolz is a Financial Representative with Northwestern Mutual Financial Network and the Kelley Financial Group, based in Beavercreek, Ohio. A financial representative is a licensed insurance agent.  He is licensed and appointed to sell long-term care insurance for Northwestern Long Term Care Insurance Co., Milwaukee, WI, a subsidiary of Northwestern Mutual Life Insurance Company—Milwaukee, WI.) Northwestern Mutual Financial Network is the marketing name for the sales and distribution arm of The Northwestern Mutual Life Insurance Company (NM), Milwaukee, WI, and its subsidiaries and affiliates. To contact Robert Stolz, please call 937-427-7185 or email him at robert.stolz@nmfn.com.

Northwestern Long Term Care Insurance Company’s long-term care insurance policy contains exclusions and limitations. Northwestern Long Term Care Insurance Company and the Northwestern Mutual Financial Network are not financially responsible for products issued by The Northwestern Mutual Life Insurance Company.

The purpose of this material is for the marketing and solicitation of insurance. Insurance Policy forms RS.LTC (0708) and RS.LTC.ML.(0708). Policy form RS.LTC.ML (0708) is only available in NJ, NY, OH and PA.

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