Why Law Students Should Know About Long-Term Care Insurance…

Recently Elder Law Attorney Bob Anderson from Marquette, Michigan, spoke to law students at Dickinson Law on the theme of “planning” and his presentation stressed the importance of understanding long-term care insurance or, because our world loves acronyms, “LTCI.” 

Bob used his thirty years of experience in counseling families to outline key points, and to explain factors that have impacted the LTCI industry.  I asked the students to summarize what they found to be most interesting and important.  Their “takeaway” highlights included:

• LTCI is an important consideration, part of the same evaluation for insuring against “unacceptable” losses, that should take place in deciding whether to insure against home fires or early death, recognizing that such events are “unlikely” to happen, but can happen to a significant percentage of the population;
• LTCI has a “cost of waiting,” both in terms of the potential to become “uninsurable” because of a disqualifying medical condition arising, and because of the cost increase in first time premiums as you get closer to the age of potential need; and
• The cost of LTCI has several important variables, which lawyers can help families understand when advising about planning options, including the term of coverage (e.g., 1, 3 or 5 years), the “elimination” period, the interaction with Medicare’s 100 day maximum for post-acute care, and the need to consider inflation protection for the daily benefit.

Bob also talked about “hybrid” insurance products, combining life insurance with an LTCI option. I think it is safe to say that regardless of their goals after graduation, all of the law students came away with an appreciation for the need to understand all available options, including LTCI, in planning or advising for post-retirement needs. 

One of our students, who is thinking about general practice, said that he can see clients asking questions about LTCI.  Bob was excellent at reminding all of us that effective elder law and estate planning attorneys address more than just what happens after death. 

Bob, whose diverse interests include cross-country ski racing and hockey, also provided a bit of surprise during his visit when he began speaking Russian — and, I think, Ukrainian — with our Russian and Ukrainian Law expert, Bill Butler.

We especially appreciate Pennsylvania elder law attorney Amos Goodall and the National Elder Law Foundation (NELF) for their roles in making this interactive program possible; the recording will be available to practitioners in the future through NELF’s educational arm. Amos also addressed our students, adding important Pennsylvania specifics to the discussion.

In a timely coincidence, AARP has a newly published Money Column, on “Should I Buy Long-Term Care Insurance?”