LONG-TERM CARE INSURANCE: ONE LESS THING TO WORRY ABOUT

A lot of people have already heard or read about the "aging of America." Whether you've heard about it or not, the fact is that people are living longer today than ever before. In 1980, there were roughly 50 million Americans older than 55. Today, there are 60 million, and it's estimated that by 2020 about 90 million people will be older than 55. As this age group grows, so will the number of people who require nursing-home care. Placing a family member in a nursing home is a difficult, heart-rending ordeal, and it's an ordeal that not only affects the individual but the entire family.

Take, for example, the Hudson family. A year ago, they faced a situation many families encounter: Their 78-year-old mother, Betty, had suffered a debilitating stroke and required around-the-clock attention.

For weeks, Betty's two sons, Mark and Dan, and her daughter, Cathy, discussed their mother's need for nursing home care. Mark and Dan disagreed about whether a nursing home was really necessary. Cathy was tired of trying to keep the peace and had withdrawn from the situation.

What none of the three siblings had been able to admit was that they were uncertain about how they would manage the additional costs of a nursing home for their mother. Their father, who had died 10 years earlier, had left enough money for Betty to live comfortably but not enough to cover an extended nursing-home stay. The burden of the expense would be on their shoulders.

The Hudsons are just one example of the growing number of families that face this situation every day. Fortunately, a visit to their family's attorney revealed that a life insurance policy' taken out by their father for himself and Betty a few years before he died, would pay all nursing home costs and some home-care expenses for Betty as long as she needed them.

No one likes to think about a potential nursing home stay, but few can afford not to. One recent study showed that nearly one out of every two people who reach age 65 will require long-term care at some point in their lives. In addition to the emotional toll such a situation can wreak on a family, the cost of this type of care poses a threat to nearly every family's financial security.

What complicates matters further is that many people believe Medicare or Medicaid will cover the cost of long-term care. The reality is that Medicare covers less than 2 percent of such costs, and Medicaid covers them only if you have virtually exhausted your life savings.

Long-term care insurance is an affordable way to protect your life savings from being depleted by the potentially exorbitant costs of a lone-term illness. It covers the cost of a nursing home stay, as well as home care and other types of long-term care for as long as you may need them. Perhaps even more important is the fact that lone-term care insurance can protect your savings and keep you from becoming dependent on other family members. For most people, that's the real benefit.

The Southeast Missourian does not recommend that readers buy or sell stocks featured in this column, which is provided for informational purposes only.