for release March 22, 2002
The Sandwich Generation . . . Helping Your Aging Parents
by Carol Abaya, M.A.
Are you juggling doing errands for your aging parents, your children, yourself and working at the same time? Are you tired, stressed out and upset that your once vibrant parent is now frail and needy?
Do you feel alone? Rest assured you are not alone! The Sandwich Generation is dedicated to the 50 million Americans who may have elder/parent care concerns and/or responsibilities.
LONG-TERM CARE INSURANCE: A MUST
Question: My husband is 75 years old, and I am 69. In total we are paying $5,000 for long term care insurance. We have a joint policy. Is this expense necessary?
Answer: Yes, I personally feel that LTCI is very important. Estimates now say 30% to 35% of those with LTCI will use it. This compares to 8% to 12% of those with car and homeowners insurance who file claims.
Five thousand dollars is a hefty sum so you need to be clear on what it covers, for how long, and the daily benefit rate.
In reference to your policy, there are questions.
· Does the policy cover both of you or just the first one to get ill and need benefits? What happens if both become ill?
· Does it cover all care alternatives? Home care, assisted living and nursing home?
· Does it contain an inflation rider?
· Does it allow you to pay someone privately and not have to go through an agency?
· How long do you have to wait before benefits will be paid?
· If you get sick and need care for several months and then get better, does the benefit period restart?
· What are the triggers for benefits? Not being able to do two out of the five ADLs (activities of daily living) OR if you get sick ad can't take care of yourself? Or both or either?
· Does it cover respite care for a caregiver spouse?
· What are the exclusions?
As health care costs continue to skyrocket, there will be more pressure by salespeople for you to buy. So here's some DON'Ts advice from Al Clapp, Jr. of Financial Strategies and Services Corporation.
Don't:
· Make LTCI decisions under sales pressure, pay a deposit just to test underwriting approval, or accept proposals that over stress coverage for nursing home or home care only.
· Buy LTCI issued by a company that is not rated A by Best's insurance rating service or well-rated by the Moody's Standard & Poor, and Weiss services.
· Be overwhelmed by sales emphasis on major differences in LTCI policies. Most contract terms have been standardized by state and other supervisory entities.
· Think that premium rates are necessarily guaranteed to stay level for your life. State insurance departments can approve premium increases in the future for all policies as a class.
· Fail to evaluate an agent's qualifications. Consider knowledge of LTCI and specialization in elder care planning.
· Rely just on your good genes. One never knows if you'll be in an accident.
You don't need to get the most expensive coverage. Balance your income with possible care costs and get a policy that will pay for the difference. That way you can get the care you'll want and protect your base assets.
In addition, a very important factor is that you can remain independent and not have to totally rely on family for caregiving.
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Do you have a question? Send it in. Although letters cannot be answered individually, appropriate letters will be answered in this column whenever possible. Letters may be edited. Send letters to Ms. Carol Abaya, c/o Name\Address of YOUR newspaper (or mail direct to her at PO Box 132,Wickatunk, NJ 07765-0132) or e-mail her at SandwchGen@aol.com. Carol also has a web site: thesandwichgeneration.com.
Carol Abaya is an international-award-winning journalist and creator of the unique magazine The Sandwich Generation: You & Your Aging Parents.
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©2002 by Globe Syndicate, all rights reserved.