NEWS RELEASE
Pearl W. Stanley
Extension Agent
Family and Consumer Sciences, CFCS
Bolivia, NC 28422
August 8, 2002
Many "baby boomers" have turned their attention to retirement planning. Their children are completing their education, the last mortgage payment is within sight and they realize effective planning will assure them a comfortable retirement. Options such as 401Ks, IRAs and CDs all play a part in the planning process. Another viable option to consider is long-term care insurance. The Seniors' Health Insurance Information Program (SHIIP), a division of the North Carolina Department of Insurance, can help consumers with questions about purchasing long-term care insurance.
A majority of people who are asked about how they have planned for future long-term care needs deny they will have any serious needs. Others plan to rely on their families to meet any care giving needs. While no one wants to think about being in a nursing home or assisted living situation, the effective planner should research long-term care insurance and understand how it can assist with future needs.
Long-term care insurance is not for everyone. Premiums can be a significant burden on income. If an individual is not trying to protect a sizable amount of assets, then he or she may not be a good candidate for this type of insurance. Many consumer advocates suggest that premiums should come from current or monthly income rather then from savings or other assets.
Several factors effect the cost of a long-term care insurance policy. Current or pre-existing health conditions could limit your ability to purchase a policy. Premium charts show that the younger an individual purchases a policy the lower the premium. However this does not mean that if you want to purchase a policy at a later age that the premium will always be unaffordable. A consumer should thoroughly research and understand how the policy operates in combination with anticipated future needs.
A long-term care insurance policy can be seen as an investment. It provides needed services when a condition of health necessitates more care. It is also an investment in the "quality of life" you establish for yourself when your healthcare needs require more dependence or assistance.
North Carolina laws require at least three levels of care be offered in order for that policy to be considered a long-term care insurance policy. Those levels of care can range from nursing home placement to homemaker services. The consumer can design a policy to fit their needs. One should consider options such as inflation protection, elimination period (deductible) and non-forfeiture rights to guarantee the policy will continue to meet their needs in the future. The National Association of Insurance Commissioners (NAIC) publishes a Shoppers Guide to Long-Term Care Insurance, which is one of the most authoritative resource on the subject. You should receive this important booklet during an insurance presentation from an agent.
"Consumers should make themselves fully aware of all of the features and benefits of a particular long-term care insurance policy before they sign the dotted line," says Jim Long, Insurance Commissioner of North Carolina. "Seek good information from your insurance agent or association and outside independent resources such as SHIIP." Commissioner Long also urges consumers to read the policy descriptions in detail and ask questions.
No matter what age you are, whether a baby-boomer or someone several years into retirement, check to see if you have covered all of your options. For answers to your long-term care insurance questions or any senior health insurance questions call SHIIP's toll-free Consumer Line (1-800-443-9354). You may also visit www.ncshiip.com or e-mail shiip@ncdoi.net for answers to your questions. In addition, SHIIP trains volunteers in local communities who are available for free, one-to-one counseling sessions. To reach a SHIIP counselor in your area, contact: Mrs. Pearl Stanley, CFCS, County Extension Agent, Family and Consumer Education, at the Brunswick County Center of the North Carolina Cooperative Extension Service in Bolivia~~~Ph: (910) 253-2610. Employment and program opportunities are offered to all people regardless of race, color, national origin , sex, age, or disability.
(The Seniors' Consumer Column is written monthly by the SHIIP staff. The column is a service of SHIIP, which is a division of the North Carolina Department of Insurance -- Jim Long, Commissioner.) P. O. Box 26387,Raleigh, NC 27611; 1-800-443-9354, (919) 733-0111; www.ncshiip.com or e-mail shiip@ncdoi.net
Please e-mail Pearl Stanley, Extension Agent, Family and Consumer Sciences, CFCS, for further information or assistance.
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Date Created 10/3/2002