At Least 70 Percent of Americans Age 65 and Older Will Require Some Long Term Care
You may be unaware that traditional health insurance and Medicare is not designed to cover the cost of long term care (LTC) that at least 70 percent of Americans age 65 and older will require during their lifetime, according to the U.S. Department of Health and Human Services. Although most people realize the importance of drafting a will or establishing a trust, many adults have never considered purchasing Long Term Care Insurance (LTCI).
For the first time, Consumer Reports.org is recommending that people shouldn’t wait to plan for a long term care event. According to Orly Avitzur, M.D. who was quoted in the October issue: "So unless you have ample savings to cover prolonged care, it’s worth considering at least partial coverage through a long term care policy."
November has been designated Long Term Care Awareness month by the American Association for Long Term Care Insurance, and is also National Family Caregiver’s Month. Since so many Americans don’t have (LTCI), the burden of care often falls upon unpaid family caregivers who must deal with the physically taxing, financial and emotional burden that has now fallen upon them.
"Unfortunately, there is a growing number of Americans who are unprepared for their future need for LTC," says Brian I. Gordon, president of MAGA Ltd., a family-owned and operated insurance agency, since 1975, that focuses exclusively on LTCI, in Riverwoods, Illinois. "This is one of the reasons why November has been declared Long Term Care Awareness Month. Financial advisors and long term care experts hope that family members will discuss what the plan is for the future if a family member becomes physically unable to care for themselves or suffers from dementia. Whether you’re a person in your forties or in your sixties, the time to plan for LTC is now."
Adds CEO Murray Gordon: "Many Americans who are working and saving for retirement haven’t considered how LTC could derail their plans. When you investigate the cost of care, it’s easy to be horrified by the sizeable portion of savings that may be needed for LTC."
The passing years become your enemy the longer you wait to purchase LTCI. There are two critical reasons why delays could have an effect on your savings.
Every year that you delay the purchase of a LTC plan, the premium increases. In addition, women are starting to pay more for LTCI because their life expectancy is longer and they face more health issues.
Once your health has declined, it may be more difficult or impossible to purchase LTCI.
"Today, LTCI is much more customized than it was 20 years ago," says Vice President Peter R. Florek. "These aren’t just one size fits all policies. The reason for talking with an experienced LTC expert like Brian or myself is to learn about your options."
Both Brian Gordon and Peter Florek have been recognized among the nation’s best for exceptional service and dedication to their clients in 2013 by the American Association for Long-Term Care Insurance. Among the nation’s Top 10 agents, Peter Florek ranks 3rd nationally, while Brian Gordon ranks 6th.
In conjunction with Long Term Care Awareness Month, MAGA would like to discuss the challenges involved in selecting the right LTCI policy for you and your family. Please contact either Brian I. Gordon or Peter R. Florek at 847-940-8866. You may also visit their website at