Mention long-term care insurance to most Americans and their eyes will glaze over.
Frankly, most people don’t want to dwell on growing old and how they are going to pay for home-health care, a room at an assisted-living facility and/or a nursing home stay. Some believe (probably erroneously) that the good old U.S. government – and the twin shields of Medicaid and Medicare – has got them covered.
But for those who have worked a lifetime to build a modest (or even substantial) next egg, long-term care (LTC) insurance can provide asset protection and peace of mind against becoming a burden on their children, experts say. Medicare only provides for very short nursing-home stays, and Medicaid regulations require recipients to spend down their assets to a scant $2,000 (basically exempting only a house an automobile) before kicking in.
Middle managers and small-business owners are often prime candidates for long-term care insurance, experts say. And baby boomers – many of whom are now witnessing their parents struggle with long-term care costs – are in the sweet spot for acquiring coverage before they get too old and sick to qualify.
Meanwhile, many companies have stopped offering long-term care insurance as part of their group employee benefits packages. Chattanooga-base Unum, previously a leading underwriter of long-term care group policies, has gotten out of the business except for servicing existing accounts, according the M.C. Guenther, a company spokesperson. Some of the major players in LTC insurance are Genworth, John Hancock and Mutual of Omaha.