Is Long-Term Care Insurance Still a Good Option?

Attorney Justin Randall recently appeared on WFRV's Local 5 Live to discuss recent news stories related to Long-Term Care Insurance and whether Long-Term Care Insurance is still a good option for managing the cost of care.

Millaine Wells: Recent allegations of misconduct by a popular insurer have consumers concerned now about the viability of their long-term care insurance.

Lisa Malak: So what, if anything, should you be doing about your plan? Attorney Justin Randall is here from Hooper Law Office. Good morning.

Justin Randall: Good morning.

Lisa Malak: All right. So what should people who are concerned about the viability of their long-term care insurance do?

Justin Randall: First thing you should do is go talk to your financial advisor or your insurance advisor. They're going to be the ones that are going to able to kind of get rid of some of those concerns for you or to tell you what your best next steps are. But most people really shouldn't worry. There's a lot of federal regulations on these types of companies to make sure that they're financially solvent enough to pay out their claims when they come up.

Millaine Wells: So let's talk about long-term care insurance in general. Is it still a good idea?

Justin Randall: Yeah it's the first line of defense for long-term care expenses. A good long-term care insurance policy will cover nursing home expenses, assisted living and at-home care as well. Even if you don't have full coverage, if you have some coverage, it's better than nothing, and it's money that you don't otherwise have to spend.

Lisa Malak: So that might lead us into our next question. What about people whose premiums have increased and they can't afford the care anymore? What about what they've already invested in things like that?

Justin Randall: Well we fully understand that you can't eat your long-term care insurance policy. You have to be able to live too. The whole purpose of this is to make sure that down the road you're protected. But if it's harming you now to pay for it, don't worry about doing that. There are other options for you. The primary thing that we suggest is go speak to an elder law attorney who can help you find other ways to preserve your assets and plan for those expenses down the road.

Millaine Wells: If we're interested in starting that conversation, maybe with our family members, how do we find out more information?

Justin Randall: So like I said, you can go speak to your insurance advisors. They're going to be the ones who know the best policies out there for you, what fits your financial situations, and what will fit your health needs as well. Then if you determine that that's not right for you, then I would recommend trying to get your family members in to speak to an Elder Law attorney. Or if they're kind of hesitant in going, go and speak with one yourself to get some advice. They can tell you what the [...] best next steps are for you.