There are three things lots of us don’t like to think about:

1) Paying taxes.

2) Death.

3) Dealing with an emotionally and financially devastating long-term illness.

Ignoring them is one option. But not a very good one. For you or your loved ones.

Death and taxes have been around for a long, long time. Neither shows any signs of going away.

Planning for a long-time disability has become more than it was 30 years ago because people are living longer. A 30-year retirement is not unusual. Check out the RMD (required minimum distribution) life expectancy tables on your Thrift Savings Plan account from the IRS.

I am sort of a poster boy for LTC. I got it very early (as in young) through my then employer, The Washington Post. It was a group plan and, for the time, a good one. At that time, nearly 100 insurance companies offer LTC plans. Today, only a handful offer it, because of the high-cost of nursing homes ($100k a year, or more, in some parts of the country). The insurance company that holds by LTC policy no longer offers it. It continues to cover those of us who signed up back in the day. But it isn’t taking any new clients because of the expenses involved.

Social Security and Medicare will not help with many (most) costs associated with LTC. Long Term Disability insurance (LTD) replaces your income if you are unable to work. But it doesn’t pay for nursing homes, assisted living or home health care from a professional or a relative. LTC does, and it comes in all shapes, sizes and prices.

Some people complain that their LTC premiums will be “wasted” if they don’t need and use it. Huh!

Wasted?

Are the fire insurance premiums you pay on your house “wasted” if the homeplace doesn’t burn to the ground? Are your flood insurance premiums “wasted” if the Mississippi, Ohio or Potomac rivers don’t swallow up your residence.

Currently, 272,000 members of the federal family — workers, retirees and military people — have LTC through the federal program. Many others, one hopes, have it with one of the few remaining companies that offer it.

So what questions should you be asking. How much do you need? What are the premiums? How long should the benefits last? What about inflation protection?

For all the answers, listen to our Your Turn radio show today at 10 a.m. here on FederalNewsRadio.com. Our lead off guest is Joan Melanson. She’s director of program promotion for Long Term Care Partners, which administers the government program.

This is definitely not a fun subject. It is downright grim. But sticking your head in the sand and ignoring any potential future need for LTC won’t make it go away.

Check it out. And if you decide you need it pray that every dollar you pay in premiums will be “wasted.”

Nearly Useless Factoid by Michael O’Connell

T.S. Elliot’s epic poem “The Waste Land” is 434 lines long.

(Source: Wikipedia)

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