The source of this care and how it will be paid for is of great concern. Most care today is paid from personal resources first, and if resources are exhausted, then from Medicaid if eligible. Long Term Care Insurance is playing an ever increasing role in the funding of long term care. Primarily because the cost of care is increasing to the point that many people simply cannot afford to pay it themselves. Depending on the location long term care can cost as much as $50,000 to $60,000 a year or more. Medicaid continues to cut back on funding and it is getting harder to qualify. It is important to consider Long Term Care Insurance simply because it may be the best choice. However, it is also important to study your options and carefully come to a decision as to which way is the best to protect yourself against this risk.

    If Long Term Care Insurance is your option of choice then there are four points to consider when purchasing a Long Term Care Insurance policy.

• Do I need it? The best way to determine this is to ask, what have I to lose and how will it effect those around me financially as well as emotionally.
  
• Can I afford to pay the premium for the coverage? It must be comfortably affordable.
  
• How is my health? Can I qualify for the coverage medically?
  
• How soon should I purchase coverage? This is extremely important as the following chart outlining the cost of waiting shows.

    This chart shows the cost of a typical plan purchased from a reputable carrier. It is simply to show the cost of delaying a decision to purchase until a later date. At each five years interval in the future what would it cost to purchase coverage and what daily amount would I need based on 5% compounding. These figures are based on starting at age 50 other starting ages could have different results.

    The plan design is for a $150 per day benefit, 5 years minimum coverage, a 30day deductible, 100% Home health care and 5% compound inflation protection. The rates are at a preferred health rating and the rates are shown at 5 year intervals. Because of the effects of inflation an ever larger amount is needed to make sure that there is adequate coverage. All inflation is factored at 5% compounding. All plans shown have 5% compounding built in and would grow to the amounts shown at each 5 year interval.

    In this table we are assuming that the policyholder will go on claim at age 85 and the accumulated premium is that amount paid from age 50 to age 85, 55 to 85, etc.