So you think you’re in the financial toilet now? Your health care and your children’s health care will cost you thousands annually, your student loans are piled up, your credit cards are all maxed out and passed due, a first home seems well beyond your reach and your 401K is worth half of what it was last year.

It could be worse.  What happens if your mother or father get sick or injured?  What if their insurance will only pay for the first 90 days of round the clock medical attention? If you think your current expenses are out of control, just imagine how much it would cost to take care of one of your parents if they became totally dependent on a doctor or nurse.

You need to buy long-term care insurance for one or both of your parents and here are three reasons why:

1. They brought you into this world.
2. You would hope your children would do the same for you.
3. You can’t afford not to!

The first two are assuming you are not a heartless, ungrateful brat. Would you be able to sleep if you knew your mother was spending her last days in pain under the care of second-rate nurses and doctors?  What kind of example would you be setting for your own kids if you let your parents go without the medical attention they needed?  You can bet they will follow your example if the same thing happens to you.

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But just in case you are one of those self-centered, obtuse, and ungrateful brats who would just as soon save for another flat screen than purchase some comfort for a loved one, there are plenty of selfish reasons why you should do this as well.

So what is the difference between long-term care and traditional health insurance?

Traditional health insurance plans will only cover medical and other related costs for the first 90 to 120 days.  After that, you’re on your own.  Long-term care is meant to cover costs such as assisted living and in-home care expenses that can last for months or even years.

Basically, health insurance will keep you alive while long-term care will protect your quality of life.  I’m not just talking about your parents quality of life either.  Are you prepared to assist your parents 24 hours a day with simple tasks such as bathing, dressing, or preparing meals?  If you have a family to support financially how would you find time to do all of these things?  If you are a stay at home mom or dad, do you think you would have the spare time to care for a parent as well as the kids?

Consider the fact that the average cost of a private room in a nursing home is over $70,000 a year.  This does not include any additional costs like physical therapy or long term treatments for conditions like Alzheimer’s or dementia which could cost another $50,000 annually.  The average cost of long-term care for someone under 65 years old is about $1,300 per year.  That number is roughly doubled for people over 65.  With numbers like that, the decision should be easy.  If you’re still not convinved, then consider that many companies offer discounted long-term care insurance as an additional benefit.  Also, your monthly premium for long-term care insurance is tax deductible which may significantly reduce the cost depending on your income.

You might be thinking Medicaid right now.  True, Medicaid will be there in the event of an emergency, but do you really want to leave your parents in the care of a bureaucracy?

Medicaid will cover the very basic needs of your parents and will provide only those services deemed necessary by the government.  Considering how the government handles most situations like disaster relief, Social Security, and Welfare, it’s a good bet the care received under Medicaid will be sub par at best.

Also consider that Medicaid only applies to the poor.  If your parents have any assets or money whatsoever, Medicaid will attempt to recover their costs.  Basically your parents will lose their house, their bank accounts, and any other investments they have once they become dependent on Medicaid.

So what happens to your mother if your father gets sick?  Medicaid is allowed to recoup costs from the spouses of qualified recipients.  This means that in addition to the emotional distress of a sick husband, your mother will also lose her paycheck when the government seeks payment for Medicaid services.  Would you want the government taking money out of your mother’s pocket at a time like that?

You’re not out of the woods yet.  If your parents have an estate of any kind, the government can seize that as well.  If your mother died after receiving years of Medicaid then the house you grew up in could end up seized by the government.  Any inheritance you might have received is now gone as the government shifts into stop loss mode.

It’s hard to imagine taking on yet another monthly expense at a time like this.  But just imagine the emotional and financial strain you would feel if something terrible were to happen to one of your parents.  It might not be a convenient time, but then again, there is never a convenient time to think about what would happen if mom or dad got sick.  For their sake, for your own sake, consider buying long-term care insurance for your parents.

~Man Overboard

Images Used in this Post

Senior Housing image courtesy of Flickr user lapstrake published under the CC license.

Assisted Living image courtesy of Flickr user wwworks published under the CC license.