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Elder Law Elements

Long-Term Care Insurance

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Elder Law Elements

     Are you a mature American (i.e., age 65 or older), do you care about someone who is, or do you anticipate becoming a mature American yourself one day? If so, then, according to the U.S. Census Bureau, you are in good company. In 1960, there were nearly 17 million mature Americans. Today, there are more than 35 million and by 2010 there will be some 40 million mature Americans. Thereafter, due to the graying of the Baby-Boom generation, we will witness that figure jump to 53 million in 2020, and to 70 million in 2030! As this mature population increases, so will the need for Elder Law services.

What is Elder Law?

     Generally speaking, Elder Law can be defined as the holistic application of general legal principles to the specific emotional, logistical and financial needs of mature Americans. Many mature Americans are concerned with two fundamental threats to their dignity: (1) becoming incapacitated, and thereby losing control to the court system over their personal, health care and financial decisions; and then (2) running out of money due to the catastrophic costs of long-term (nursing home) care, and ending up on welfare (Medicaid). Fortunately, these threats may be minimized, or even avoided, through properly coordinated legal and financial planning.

Read more about financial challenges facing senior citizens when it comes to planning for incapacity and long term (nursing home) care...

Long-Term Care Insurance

     No one relishes the notion of paying insurance premiums of any kind. After all, you can pay and pay and pay ... and never collect on a claim. If you are fortunate.
     The purpose of insurance is to transfer a risk that you can afford (i.e., the payment of a premium with no guarantee of its return) to cover a risk you cannot afford. For example, what homeowner does not insure their personal residence from damage due to a fire? Or, what automobile owner does not insure their auto from damage due to a collision? Consider this: The odds of a major fire insurance claim are about one in 88, with an average claim of $2,000. The odds of an auto insurance claim are about one in 47, with an average claim of $8,000.
     Against this backdrop, why would any responsible, mature American (i.e., age 65 or older) not insure against the financial risk of requiring long-term care at some point? The odds are nearly one in two that a person over age 65 will need long-term care for about 2.5 years at an average annual cost of $76,460 in 2008, making the average claim in excess of $200,000.

Read more about long term care insurance (nursing home insurance) policies ...