After more than 20 years in elder law, I have learned that with the wave of baby boomers approaching retirement, there will be an unprecedented demand for professional long-term care services, including those provided by home healthcare agencies, assisted living facilities and nursing homes. With the increased demand, prices for the services are likely to skyrocket, making them unaffordable to most.
To avoid such a result, long-term care insurance ("LTCi") provides the financial leverage necessary to overcome such a result, allowing an individual to obtain the care that he or she needs, in the environment of his or her choice. Thus, it is my opinion that if an individual is in good health, less than 65 years of age, and has $300,000 of liquid assets, he or she cannot afford to go without LTCi coverage. Additionally, with a properly structured LTCi policy, including coverage for all professional long-term care services, and a return of premium rider, the LTCi policy becomes the financial safety net for the individual. Furthermore, if the LTCi coverage is not used, the individual's designated beneficiaries - which may include a trust, will receive a full refund of the premiums paid by the individual.
With the insurmountable long-term care statistics, elder law attorneys need to purchase a LTCi policy. The knowledge and information that he or she will gain from such ownership will give them instant credibility with the clients that they come in contact with, especially when it comes to explaining the advantages of preplanning for long-term in a post DRA environment. More credibility brings more success, and more success ultimately brings more clients. This is a win, win, win situation for all involved!
