Did you know that your long term care considerations might be just as important as your investment choices? Deciding how you will pay for your care in the event of a long-term illness or disability may be one of the smartest considerations you can make in your financial planning efforts.

Get the facts:

• According to the National Center for Health Statistics, Americans are living about 25% longer than their parents and grandparents.


• A 1999 survey by the Employee Benefit Research Institute showed that poor health and disability played a significant role in early retirements.


• Long term care usually is not covered by an employer's health insurance plan. Medicare and Medicare supplements limit coverage and eligibility. Medicaid pays only after all savings and assets are gone.


• A year's stay in a nursing home could easily cost $40,000 to $80,000.

Considering your need for long term care often involves thoughtful discussions with loved ones. Your ability to financially withstand the impact of a long-term illness also warrants consultation with your financial advisor, estate planner and perhaps your doctor and lawyer.

Here are a few questions to ask yourself.

• How much coverage do you need and for how long?


• What do you look for in policies and providers?


• What does a long term care policy cost?