by Violet Swenson
Age may just be a number, but without the proper planning and access to the right resources, the twilight years may turn out to be a drag. And this sense of dread amplifies more for women – which is why learning more about long term care insurance (LTCI) may be a necessity for females everywhere.
Why Women?
LTCI, in a nutshell, is coverage for custodial care anticipated during the retirement years. Primarily focused on the activities of daily living (ADLs – dressing, bathing, mobility, etc.), an LTCI is designed to give the elderly a more comfortable and safer way of living.
Studies show that women tend to live longer than men by five to seven years. A female’s longer life span (which results to higher incidents of custodial care) is a factor that LTCI can help address. Extended medical attention, assistance on daily functions, and other caregiving responsibilities associated with aging are some problems that can be resolved by an LTCI.
Issues that Need to Be Addressed
Although, a woman’s longevity can work against the hope for an LTCI coverage. A longer life span may mean additional costs to consider, or worse, denied for coverage. Not having any insurance to cover for the ADLs may compound future costs, by factoring in other daily expenses. As such, women tend to pay higher policies than their male counterparts.
Additionally, women tend to earn less than men. A wage gap is apparent in the country, which can hurt single women approaching retirement. Premium price hikes, which have been reported recently in the LTCI industry, does not also bode well for females. The lack of income that women are unfortunately associated with is an issue that can be financially (and emotionally) draining for retirees.
Misinformation is also a problem that needs to be tackled. For most individuals, LTCI has the notion strictly meant for nursing homes only. In fact, coverage extends for in-home care as well. Another is that most mistakenly rely on other health insurance programs to pay for future long term care needs, such as Medicare and Medicaid. Medicare will not pay for LTC (it will only cover a short period of hospital stays) while Medicaid will require an individual to be part of a defined poverty level before benefits are given out.
Another important issue that needs more attention is that women are commonly positioned as caregivers. Whether in a household or in a professional adult care setting, the person who would usually administer caregiving services are females. This role places women in an uncomfortable position: caregivers sacrifice time, work opportunities, and personal relationships in order to accomplish their tasks. With multiple responsibilities, females not only have to deal with the possibility of minimal income but facing stress from caregiving responsibilities as well.
Identified Solutions
Having a sense of urgency will help women to prepare and face the challenges encountered when applying for an LTCI. Seeking out the help of specialists and financial advisors will allow women to choose from multiple quotes to best fit their circumstances. Also, starting and purchasing a plan early in life will give females the savings they need to pay: LTCI premiums scale in comparison to a policyholder’s age, granting the flexibility necessary especially for individuals with low income.
For custodial care responsibilities, it was noted in a study done by Genworth that LTCI helps relieve caregiver stress. With the knowledge that she will be covered during the later years, a woman can now efficiently manage her current tasks.
Concerning LTCI premiums, women can consider availing of couple discounts and partnership policies. State-sponsored partnership policies can be an alternative way to help lift the burden of paying for LTCI premiums. This option allows policyholders to take advantage of Medicaid benefits to pay for LTC expenses, without having to go through the initial approval process of losing a significant amount of assets. For discounts, lower premiums are offered for married couples. Policyholders should always seek the advice of LTCI specialists for options available.
Knowledge is a key factor when preparing for the future. Women, in particular, should take the extra steps mentioned above to secure the tomorrow that they deserve.
About the Author
Violet Swenson is the Online Content Director at LTC Global Agency. She has thrived in the insurance and retirement field for several years. Her career revolved around helping people plan and create tailor-fitted long term care plans for their golden years. She strongly believes that long term care insurance should be part of every person’s financial plan for the years ahead - part of her personal advocacy is to inform people about what the long term care industry really covers, and to debunk myths surrounding it. Likewise, she puts what she has learned in her insurance career through insightful articles relating to long term care, retirement and finance.