Advisers say don’t wait to consider long-term care insurance – Cleveland Jewish News

Aging is inevitable and time has a tendency of passing by quicker than we expect. That’s why planning for your future while you are young is critical. One of many things that should be considered is long-term care insurance.

Scott Gohn, principal of Eisner Gohn Group in Beachwood and Steve Raichilson, principal of Raichilson & Associates in Solon, explained the importance of securing long-term care insurance, when to start considering it and why you should inform your family of the plan.

“I would begin educating in the mid-40s and planning as appropriate (and) execute plans on or before the age of 50,” Gohn recommended.

He noted that conversing with one’s family about insurance plans and care wishes, while sometimes uncomfortable, is beneficial to clients and their future caretakers.

“If a conversation is had, it makes it easier,” Gohn stated.

Long-term care insurance is a product that is underwritten, he pointed out. When a person applies for the insurance, they can not have issues with eating, bathing, toileting, transferring or continence.

Each client’s needs are different, Gohn said.

“When we sit down with a client, we talk about their particular situation and their particular goals,” he explained. “It’s really about ‘What is the client’s specific goal? What is their budget and how do we use the contracts that are available to us to address their specific needs?’”

Raichilson said, “I would say the best time to think about and secure (long term care insurance) is before you’re 60.”

He added that premiums become more expensive at age 60 and above.

Raichilson said the average cost of a nursing home is $11,000 per month, the average cost of home care is $7,000 per month and the average cost of assisted living is $5,000 per month. He advised that clients insure $5,000 to $6,000 per month. They can then supplement the remaining costs with income from Social Security and pensions.

Raichilson’s goal is to save people’s “nest eggs,” which are their life savings, retirement and other assets. Speaking from his position as former CEO of Menorah Park in Beachwood, Raichilson pointed out that he often saw people have to spend all of their savings on long-term care.

“My whole focus on people is to save their savings, but not their income,” he stated.

Raichilson also highlighted the importance of conversing with family members about the insurance policies they have in place.

He said that he often meets with clients and their children who will be taking care of their finances when the time comes. Doing these things to plan ahead will be beneficial in the long run.

If a person does not secure long-term care insurance ahead of time, there is nothing that can be done later on in life if and when it becomes needed, Raichilson noted.

“There are very few good insurance companies around, doing long-term care insurance,” Raichilson said. “The ones who are still offering the program are very good.”

He recommended that people in the market for long-term care insurance research the financial backgrounds of the companies they’re considering working with and make sure that they are established enough that they will still be around in 20 years.