Long-Term Care Insurance - Adult Children and Their Parents Are Planning for Long-Term Care Together

Your need for long-term care could not only deplete theinheritance you had planned on leaving to your children, it may also affect their financial security, career goals, as well as their personal lifestyle.
To alleviate these problems, more and more parents and their grown children are putting both their heads and their money together to develop a solution to this growing problem.
A survey conducted by the National Council on Aging revealed that there are distinct generational differences regarding the issue of how a parent's long-term care expenses would be funded.
For example, 50% of adult children would be willing to use the money they have set aside for their own children's education to pay for a parent's LTC expenses.
This is clearly contrary to the desires of their parents.
The survey revealed that 93% of parents would not want money set aside for their grand-children's educationto be used for their care.
LTC Insurance may offer security to both parents and children, by assuring that education, retirement income, and inheritance dollars will not be invaded to pay for a need for care by an older parent.
In some cases, children and parents are sharing in the cost of coverage.
Estate Planning Attorney James Phillips of Pleasanton, CA explains that the emotional issue of inheritance, mixed with the stress of a potential need for long-term care, may provide the catalyst for grown children to consider paying for at least some of the LTC insurance premium for their parents.
This may alleviate the potential problems that might arise among siblings once a parent requires long-term care.
Although inheritance and income protection are the rational reasons behind having the "long-term care conversation" with parents, the National Council on Aging survey pointed out that the primary motivation for grown children to consider sharing in the premium with their parents is the peace of mind of knowing that their parents will have options for quality care- options that otherwise might not be available to them.
LTC insurance is purchased because the emotional and psychological benefits of knowing their parents will be well cared for outweigh the cost of the premiums.