(Long Term Care Insurance) LTCI" You May Not Even Know What it is… But Theres a 50% Chance That Youre Going to Need it.

Do you feel lucky? Does fortune smile on you? If so, maybe you dont need to think about the future or plan for a rainy day. Maybe you and your employees dont need LTCI—long term care insurance, that is.

(PRWEB) November 25, 2004 -- Although its been around for more than 35 years, LTCI is perhaps the least understood product in the insurance family. Only 6% of Americans have it. Yet a full 50% of us will need long term care at some point over age 50.

What exactly is long term care? Its the assistance you may need if you become unable to care for yourself because of prolonged illness or disability. LTCI provides coverage for such care, whether received in a nursing home…or in your own home.

And as the American population ages, the need becomes more real. Today, there are an estimated 35 million Americans age 65 or over. By 2030, there will be 18 million Americans over the age of 80. Baby boomers are just beginning to understand the importance of long term care.

One of the myths of long term care is that Medicare will foot the bill. But Medicare pays just a very small percentage of nursing home care. And eligibility is very restrictive.

Like health insurance, LTCI offers tax advantages. Benefits are tax free and premiums are deductible. Group coverage is portable, which means employees can take their coverage with them if they leave the company. Employers may deduct the cost of premiums for employees—which may be why more employers are adding LTCI to their benefit portfolios.

In fact, Federal employees were offered LTCI for the first time. As the countrys largest employer, the government sets the tone for the rest of industry.

The average stay in a long term care facility is 2½ years. The average national cost for nursing home care? It exceeds $4,600 a month. And perhaps most shockingly, 40% of LTCI beneficiaries are under age 65.

Thats one reason why the best time to purchase LTCI insurance is in your late 40s or 50s. Its likely youre healthier, which makes you more insurable—and premiums lower. Premiums are spread out over your expected lifetime, so its cheaper to buy at 40 than 70…and you have protection in case you need it.

LTCI benefits range from $100-$300 a day. Policy duration may be two, three, four or five years, or of unlimited duration. Inflation protection is optional.

Murray Gordon is the president of MAGA LTD, a long term care insurance agency located in Deerfield, Illinois. (847-940-8866, www.magaltc.com).

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