Even if you have never been responsible for a member of their family in need of long-term care, most people at least know someone in that situation. If you have experienced this first-hand, you already recognize the need for long-term care insurance.

The fact is, your family members are not only at risk without long term care assistance, but yours are at risk without it, too. It is important to ask yourself, “What do I want for my future?” Your financial goals depend on your resources, needs and the things that are important to you. You plan for your family vacation, buying a house and a car, your children’s education, your retirement, etc. This list of considerations should also include planning for the possibility of long term care needs.

This planning is so essential because long term care costs are on the rise in the United States. According to the Federal Long Term Care Insurance Program, by the year 2030, the national annual cost of a semi-private room in a nursing home will be $190,600.

Costs for an assisted living facility will be $109,300 and home care costs will climb to $68,000. The reality is that even a short duration of care can exhaust a lifetime of personal savings. Many Americans believe that Medicare or Medicaid will cover all of their long term care needs, but what many people don’t realize is that neither of these programs cover all expenses and may provide limited choice for those in need.

According to ‘‘Medicare & You 2006’’ published by the U.S. Department of Health and Human Services (September 2005), Medicare only covers 11 percent of nursing home care costs and 24 percent of home health costs. So why purchase long term care insurance?

It protects your assets and provides financial stability for your loved ones, it provides freedom of choice concerning where you want to receive your care — it’s even nicknamed, ‘‘stay out of nursing home insurance’’ — and it relieves the burden on your loved ones.

When choosing a long term care insurance company it is important to pick a recognized, industry-leading company with a proven track record of paying claims.

The insurer should also have financial strength and strong operating performance.

Look for companies rated A and above by analysts such as A.M. Best, Standard & Poor’s and Moody’s.

Also, it is important to work with your Financial Advisor to pick the best type of long term care insurance plan for you as there are several different types of plans — many of which can be tailored to suit your individual needs and, most importantly, provide you with quality insurance when you need it most.

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By Heidi R.L. Koler

Heidi R.L. Koler, M.S. is a financial advisor with Ameriprise Financial. Holding her Series 7, 66 and PA, WV and OH Life, Accident and Health Insurance Licenses, she is a combination stockbroker and insurance agent. She is a native of the Ohio Valley and is a graduate of Carnegie Mellon University. She can be contacted for further information at (740) 359-0059 or via email at heidi.r.koler@ampf.com.

Copyright © 2006 The Intelligencer & Wheeling News Register