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The subject of long term care insurance coverae is quite an emotional one. This is an acknowledged reality in spite of the fact that most people recognize their vulnerability to health care expenses as they age. It is not a proper place for emotion, however, as financial considerations should dominate the decision making process.

The emotional response typically is denial - conversation closed. Whether or not this turns out to be a wise decision remains to e seen, Rejection of the use of insurance does not avoid the other cost - always having to wonder if the nasty statistics will include you at some point in time as a contributor to the business of the health care community.

The problem that I see with the idea of buying long term care insurance is threefold;

1. It is very difficult to be assured that your premium costs will not rise, or that you coverage will be enough

2. You may never need the coverage. (You may be the lucky gambler, and all the money you pay for insurance will be wasted.)

3. There is a better way.

All the arguments in favor of carrying insurance are recognized as legitimate, I would argue. However, it should be understood that there is a way that problem 1 and 2 can be negated. Here is the 'better way', you may be able to accomplish:

Use your life insurance! This is possible if you carry life insurance with an accelerated benefit provision for long term care. Chances are your present life insurance has no such provision, but modern contracts are becoming more widely available that allow you to access the death benefit while you live. Typically, you can have up to 2% of the face amount paid to you if you need home care or facility care. The benefit will be triggered by the same health considerations as a long term care insurance policy, and will last as long as you have not used up the face amount of insurance. Premiums do not rise, and you are eligible for benefits to be paid wherever you may be located, as long as you remain disabled.

Best of all, if you are the lucky person who does not use the benefits, the entire face amount is payable to your heirs as a tax free death benefit.

If you wish to include a charity in your planning, you can learn more by going to www.cga-advisor.com to learn how to get a tax credit to help pay for the insurance premiums for the life policy. All of the above discussion assumes that you are open to investigating working with insurance companies. You will be well served by having a competent agent whom you trust.

Learn more about this author, Robert Zimmerman.
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