Long-term Care Conundrum

I’ve been blessed—or cursed—with great genes, all depending how you look at it. My parents and grandparents all lived well into their 90s. But those longevity genes will only be “great” if my health and money hold out.

As my parents crossed over that ninety-year-old threshold and needed increasing care, I watched their life savings disappear at a dazzling pace. They were adamant about staying in their own home and remaining independent as long as possible. I was in a constant state of panic that they would live longer than their resources.

It was a call to action. My husband and I began exploring Long-Term Care (LTC) (coverage that pays when an elderly person needs care at home, an assisted living facility, or nursing home). It was a good move. According to the New York Times, 70 percent of those over sixty-five will need LTC at some point in their lives. With genes like mine, the odds are much higher.

Getting insurance for my husband Phil was a piece of cake. The top rated company by A.M. Best (the gold standard for corporate ratings) accepted him without hesitation. But my same “great genes” that bestowed the gift of longevity also imparted osteoporosis. Five years ago, the common condition was the kiss of death to LTC providers.

One agent finally found a “B” rated company that said “yes.” Reasoning that any coverage is better than none, I enrolled before they could change their minds. Five years and several premium increases later, I checked A. M. Best again. This time, my company’s rating was in the toilet. It had slipped to a “D.”

I was horrified. Had I thrown away five years of premiums on a failing company? On the advice of Judy Darby, executive director of ElderCare Connections, which provides geriatric care services and specializes in financial matters, I contacted an independent insurance agent. “They represent more than one company and can tailor a policy to meet your needs,” Darby said. “This is very complicated insurance made more difficult because no one knows what their needs will be in the future.”

This time around, I fared better. The good news? I was accepted by an A++ company and an A+ company. The bad news? I was five years older and the premiums had gone up exponentially. Also, the osteoporosis—even though greatly improved—further bumped up the premiums.