Week of November 18 - November 24

Forget the onslaught of grey hair or the threat of running out of money. According to the results of a new survey, the biggest concern Americans have about getting older is the possibility of having to rely on others to take care of them.

The nonprofit Life and Health Insurance Foundation for Education (LIFE) announced these survey findings today to get Americans to think about how they will be taken care of in the future and the importance of long-term care insurance. Long-term care insurance helps you pay for services if you develop a chronic illness or become disabled and are unable to care for yourself for an extended period of time.

"It's not a pleasant thing to think about, but the reality is more than 60 percent of Americans who reach age 65 will need long-term care at some point in their lives," said Deb Newman, CLU, ChFC, LTCP, president of Newman Long Term Care and spokesperson for LIFE. "Given recent medical advances, the fact that people are living longer and costs of care are skyrocketing, it's imperative that you set forth a plan so that you will always be taken care of. Long-term care insurance ensures your independence by providing the financial means to cover a variety of care services so that your loved ones won't have to."

Survey Results

Conducted by KRC Research October 25-28, 2007, the LIFE survey polled 1,009 adult Americans on their fears about getting older and found that people are twice as likely to be afraid of being dependent on others (34 percent) or deteriorating health (33 percent) than they are of running out of money (16 percent). Only nine percent of Americans cited losing their dignity as their biggest fear.

Respondents were also asked who they would most prefer to provide them with assistance if they needed help handling some of the basic tasks of daily living, such as bathing, eating and dressing themselves. The most popular response was a spouse (38 percent), followed by a professional caregiver (31 percent). Just 14 percent said they would prefer help from their child and five percent cited a parent, compared to three percent who said they'd prefer help from a sibling and three percent who said a friend.

LIFE released these survey results to coincide with Long-Term Care Awareness Week, taking place November 4-10, 2007. The survey polled a nationally representative sample of 1,009 adults, age 18 and over via telephone and has a margin of error of +/- 3.1% at the 95% confidence level.

Long-term Care Insurance Buying Tips

"Shopping for a long-term care insurance policy may seem complicated, but the good news is that there are a multitude of options and features to choose from, enabling you to find a plan that specifically meets your needs," said Newman.

To help simplify the buying process, LIFE offers the following six tips to help people navigate their long-term care insurance options and design the best policy to fit their preferences and budget:

-- Work with an insurance agent you trust - Once you've made the decision to purchase long-term care insurance, make sure you've enlisted the help of a qualified insurance professional who specializes in the product. Every policy is different, and a professional who understands all the options available can help you hone in on the right mix of benefits to fit your needs.

-- Decide how much you'll need - Called the daily or monthly benefit, this is how much the policy will pay you for covered services, once your claim is approved. To determine an adequate amount, start by making sure it would cover the average cost for long-term care services in your area.

-- Calculate how long you'll need it - The maximum benefit is the total amount of benefit you will receive for the length of your policy - which can be one or two years, or a lifetime, if necessary. The longer the time period, the more expensive the policy, so work with a professional to decide how much it is that you can afford.

-- Pick your deductible - The longer you're willing to wait before benefits begin to be paid out, the cheaper your policy's premiums will be. This has to do with what's called the elimination period, or the amount of time required before the policy will begin making payments. You can typically decide between zero, 30, 60 or 90 day periods.

-- Choose the types of facilities covered - Most of today's policies will cover any number of care preferences and settings, from nursing homes and assisted living facilities, to home aides. Depending on your budget, find a policy that will be as flexible as possible so that any type of care will be available to you when you need it.

-- Make sure your policy will always be up-to-date -- Inflation protection is one of the most critical components of a long-term care insurance plan because it will continually update your policy to cover the rising costs of care over time.

For more buying tips and information on long-term care insurance, visit LIFE's website at www.lifehappens.org.

Source:

Life and Health Insurance Foundation for Education

About LIFE:

The nonprofit Life and Health Insurance Foundation for Education (LIFE) was founded in 1994 in response to the public's growing need for information and education on life, health, disability and long-term care insurance. LIFE also seeks to remind people of the important role insurance professionals perform in helping families, businesses and individuals find the insurance products that best fit their needs. To learn more about these topics, please visit www.lifehappens.org.