There will most probably be a day when applying for Long-Term Care Insurance (LTCi) involves finding out your "Genetic Health Risks".
Some of us are rightfully fearful; having a parent who developed Dementia or Alzheimer's and experiencing the emotional drain and financial impact it has on the whole family. Compounding, living with that fear of not knowing what your future will be.
Long-Term Care - Assistance with Quality of Life.
Who really needs it?
Everyone!
By taking steps, to insure you continue to live life your way, regardless of how your health progresses, will help set the stage for you to:
Enjoy Life &
Not Just Show Up
The Food and Drug Administration approved the Gene Testing Company “23andMe” in April 2017 to began offering tests that revealed if a person has inherited the gene “ApoE4” which increases the lifetime risk of developing Alzheimer's.
Insurers, at this moment in time, are not yet permitted to require a gene test when you apply for LTCi.
The medical part of the LTCi application process has not been very extensive; it usually consists of:
current and past medical history (request medical records)
habits such as drinking, smoking, activity etc.
blood/urine work ups
measurements, i.e., height and weight, blood pressure, pulse and
If you are 65 or older: you will be asked to participate in brief memory and mobility exercises
For now, under the Genetic Information Nondiscrimination Privacy Act Insurers cannot use the results of such gene testing in determining whether they will give coverage to an individual for LTCi.
Presently Gene Testing is primarily being used to help individuals learn more about their distinctive genealogical makeup. It’s important to note that having the “ApoE4” Gene does not mean that you will develop Alzheimer’s. Learning that you have the “ApoE4” Gene with the Gene Test can help you take steps, along with the guidance of your doctor, to lower the possible risk of developing Alzheimer’s.
The average individual has little idea of how they will actually age. They might know something about their family history, and in addition to improved diet and exercise they may be fortunate to discover some of their family’s chronic or inheritable diseases may have skipped them.
How can you plan for your future and anticipate what type of care you will need to help you maintain the type of life style you choose to live?
Not such an easy question, but one that should not be ignored.
Our health system is evolving and no one can firmly state what it will look like when the time comes when you will actually need assistance in maintaining your quality of life.
I remember turning 50, the typical age at which many people apply for LTCi. I felt the weight of the world on my shoulders at that time. I was making an important decision: to ensure I had the funds to pay for any quality care I may need, and for those funds to not impact my brokerage and retirement accounts.
I knew I had no choice but to be proactive; especially being single and knowing I needed to take full responsibility for my future quality of life.
I did my homework and jumped at the opportunity to purchase two LTCi Policies:
one that distributes cash and
the other tied to covered services (such as: nursing home, assisted living and home care)
But in order to start receiving benefits from both policies, I must first meet:
my inability to perform 2 or 3 “activities of daily living” (ADLs) and
an elimination or waiting period (generally ranging from 30 to 100 days, during which I still must pay for my initial care)
With my LTCi set up I would still need to liquidate funds, from one of my accounts, to pay for my first 100 days of initial care.
Why did I take out Long-Term Care Insurance?
I didn't want to use my brokerage/retirement accounts to pay for LTC needs.
I felt making yearly premiums was similar to paying for Insurance on your car; hoping I will never need to use it.
I liked the tax-free/compound-interest growth of qualified polices and purchased 2 policies I could afford and that would give me sizable daily benefits.
Once I qualify to start receiving my benefits I will stop making my premium payments towards my LTCi.
Being single I liked the idea that the plan has an Independent Care Coordinator who will work with my doctor and family in putting a plan of care in place.
It's been years since I have set up my LTCi Policies and the landscape of the Industry and the products they offer has evolved. Many Insurers under-priced their products so they could capture a greater share of the market. The algorithms they used to price their premiums underestimated: claims, people living longer, advances in medicine to keep people alive and poorly investing their own portfolios.
There were and still are Insurers who get it right most of the time. The down side is that they look like outliers because in order to sustain their LTCi Programs they have to quote higher premiums.
While it might not feel like the LTCi industry is highly regulated, an Insurance Company can’t simply increase their premiums just because they got it wrong. When the State Insurance Regulators are asked by an Insurance Company to increase it premiums, the Regulators have to weigh consumer protection against each company's financial stability.
I have great confidence in placing LTCi Policies with highly credit rated companies that can show track records of few increases in their premiums.
To learn more about “ApoE4” click on Nick McKeehan blog - post
Contact: Debra K. Bedell, Insurance Broker
Debra K. Bedell
Insurance - a great Hedge against Risk.