5 Most Common Myths

1. My kids will take care of me.


A couple generations back it used to be that family would take care of family. If Mom got to the point where she needed long term care she would move in with her kids. Our society has become more complex and now typically both the husband and the wife are working and simply don’t have time to take care of Mom and Dad. People used to live in the same town they grew up in, but now the kids move all over the country and even the world.

2. Medicare and Medicaid will pay for my long term care expenses.


Medicare is your primary health insurance and is typically for those who are disabled and for people 65 and over. Medicare does not pay for long term care expenses. Medicaid is the welfare program that will pay for your medical and long term care expenses only after you spend down your assets to basically nothing. People who have higher net-worth’s will have to end up spending all their savings and assets in order to get Medicaid to pay for Long Term Care. This is why long term care insurance is so crucial to protecting a family’s financial assets.

3. I’m too young to be buying Long Term Care Insurance.


Most people assume that needing long term care will only affect the “old people.” The facts are that long term care can happen to anyone at any age. In fact, 40% of the people who need long term care insurance are of working ages between 18 and 64 and 60% of people who will need long term care are 65 or older. Long term care can happen to anyone at anytime and it is not just for the seniors.

4. I’ll use my own assets and self-insure.


This is a common myth that people can invest their own money and use it to pay for their long term care expenses. Unless you have assets above 5 million you should probably think twice about self-insuring because you never know what the market will return and how high long term care costs will be in the future.

5. Long Term Care Insurance is expensive


Long term care insurance premiums are much lower the younger you are when you purchase it so it makes sense to plan for this when you are younger and healthier. You will pay less in the long run if you buy long term care insurance when you are young; you will pay the premiums for more years but they will be much less expensive than if you wait.