During the last several years, I have had the honor to address my colleagues at the AICPA’s (American Institute of Certified Public Accountants) National ElderCare conference in Phoenix, and to serve as a panelist at the day-long nationally televised symposium for ElderCare professionals in Dallas.  The overriding message I heard from fellow CPAs and attorneys was the importance of setting into place NOW a long-term care plan — a plan that details how you will finance your and your family’s future ElderCare needs.

Long-term care costs continue to outpace inflation and will, according to most experts, triple within the next 20 years.  With so much financial risk riding on this one decision, many experts agree that if you are healthy and can afford the premiums — consider purchasing long-term care insurance now.  Long-term care insurance is a sound way for many Georgia families to defray the high cost of their future ElderCare needs.

The bottom line is that long-term care insurance gives you options.  It is the best way, often the only way, to ensure that you and your family have options available so that you decide where you will live and how you will be cared for.

One reason to consider buying long-term care insurance now is cost.  Not only do premiums increase with age, but as the cost of long-term care continues to outpace the Consumer Price Index, the premiums on new policies increase as well.  Your good health is another reason.  You simply won’t be approved for a long-term care insurance policy if you become chronically ill or disabled.  And, finally, availability is an issue.  Several major insurance carriers recently have exited the long-term care insurance business, and those that remain are setting more rigorous standards for applicants.  The fact is that it’s getting harder to buy long-term care insurance, and from all indications it will become more difficult as the months and years go by.

 

By Phillip G. Sanders, MBA, MSHA, CPA
Georgia ElderCare Advisors, LLC
Atlanta, Georgia