At least with an auto accident you know you are covered by insurance. But what about long term care? Who will pay if you need it?

You will. And it would cost you more than $55,000 per year in 2002.³ By 2007, that cost is expected to rise to $94,000 per year.⁴

Surprised? A recent study by the American Association of Retired Persons (AARP)⁵ found that 45% of Americans age 45 and older do not know how much long term care costs. Further, 55% mistakenly believe that Medicare will cover nursing home or home health care costs (it only covers short term stays).

Others believe that Medicaid will rescue them from the high cost of long term care. But Medicaid only begins to pay for long term care once you have exhausted your own assets and savings.⁶ Plus Medicaid may restrict your options when it comes to choosing the type and location of care you will receive.

All this indicates a potential crisis in long term care on a national basis. More importantly, it points to a personal crisis for individuals, couples and families that do not plan properly for future long term health care costs. At risk is a lifetime of savings, personal assets and even the ability to choose the location of one's own care.

What can you do to protect yourself, your spouse and your family? Long term care insurance programs are available to provide funding for nursing home stays, assisted living facilities and home health care visits. This lets you preserve your savings and retirement income.

Even more important, being able to rely on a long term care insurance policy will allow you the flexibility to make your own decision on which type of care is best for you or your spouse - a skilled nursing facility, assisted living community or care in your own home.

The AARP study cited above also found that 31% of those surveyed believed that they already have long term care insurance coverage. But the Health Insurance Association of America says that only about 6% of Americans have purchased such insurance. Are you one of them? If not, maybe now is time for you to find out more about this important part of planning for a secure future.

For more information about long term care insurance that is available as a member of University Credit Union, call toll-free (800) 443-6003 or go online to the Long Term Care Insurance Web site.

¹ Americans for Long Term Care Security, 2001
² Underwriter's LTC Council, 2000
³ National Underwriter Magazine, 1999
⁴ American Academy of Long Term Care Insurance Professionals, 2001
⁵ AARP, 2001
⁶ Health Care Financing Administration, 1998