One of the most widely discussed topics in the senior circles is the need for and the cost of long term care insurance.

Unfortunately, there is a tremendous amount of information in the marketplace on these topics, and not all of it is factual.

Most of the discussion centers on whether or not to buy a policy and what kind of policy to buy. The fact of the matter is that every person has different needs and circumstances.

I find it bothersome as to why some insurance agents only have one policy from one company to show all of their clients. How absurd!

You can't tell me that a 60-year-old couple with $850,000 in assets to protect should be buying the same policy as a 72-year-old single woman with $100,000 in assets to protect. That just does not make sense!

When purchasing a long-term care policy, there are several variables to consider that will affect the benefits as well as the premium. Careful consideration must be taken to insure that the policy fits the needs of the policyholder.

In this column, I will discuss the different variables that you will have to consider and how they might affect you.

Before any policy decisions are to be made, there must be a careful examination of your financial position.

Be prepared to produce a good financial statement in order to fit the plan to your asset base.

LTC is a continuation of your financial plan and should be treated as such. If an agent sits down with you and shows you a long-term care plan without asking you about your personal finances, that agent is not working for your best interest and you should be ready to walk away.

Do not be frightened into buying the wrong policy.

First, there must be a decision on the level of benefit. Typically, benefit level is discussed in terms of dollars per day.

The cost per day can vary throughout the country, but in our area the rate can be up to $120 per day for a nursing home or assisted living facility.

This figure does not account for medications or for ancillary charges, so in actuality, the cost per day could be much higher.

The next decision that must be considered is to select an “elimination period.”

An elimination period is the time from the date that care begins until benefits begin, and can range from 0 to 180 days or more.

Definitions for an elimination period can differ between companies, so do your homework.

Since this period of care is paid from the patient's own pocket, it can be likened to a deductible. The longer elimination period selected, the lower the premium you have to pay; but the more first dollar payments you will be responsible for.

A word of caution is warranted here. When considering which type of LTC policy to purchase, one must be careful to ensure that the policy covers all of the types of care that may be encountered.

The policy should include coverage for nursing home, assisted living, adult day care, at home care and community-based care.

There are several companies that are marketing a “bare bones” policy in order to keep the premium low-be wary of low-ball quotes.

Another important decision you will have to make is how long of a benefit period you will need.

This is where you need a crystal ball so that you can see into the future.

No one knows how long they will need long term care or if they will even need it at all.

That is why this is called a plan. You have to make an educated guess as to how long of a benefit period you will need.

Typically, companies offer benefit periods of 2, 3, 5 and 10 years as well as lifetime benefit.

According to several government sources, the average nursing home stay is 2.6 years-so the 3-year period is a safe bet, right? Not so fast.

That statistic is for a NURSING HOME STAY. The majority of people receiving care are not getting it in a nursing home. In fact, the number of people entering a nursing home has been declining over the past several years.

Most people are receiving their care in their own home or in assisted living facilities.

The more accurate statistic to consider when choosing a benefit period is this: The average person receiving care is 77 years old and has a life expectancy of 11.6 years.

If you buy a 3-year policy and need 12 years of coverage, you have defeated your goal of planning for long term care.

I almost always recommend the lifetime benefit to my clients, as the risk is too great to make a guess here.

Other decisions that you will have to consider are: inflation protection, and nonforfeiture benefits.

If you purchase your policy before you reach the age of 70, inflation protection is a good idea.

After age 70, you just have to consider how quickly costs are rising in your geographical location.

The other decisions revolve around the luxuries of a policy-non-forfeiture will return to you some or all of your premium should you not use the policy, but it is very expensive.

The confines of space in this column prohibit me from being more comprehensive in my discussion of long term care insurance.

Just keep this in mind: Long Term Care is a complex issue that should be handled by a professional. Find a good Long Term Care Advisor and review all of your options.

George Harris Jr. is a 20- year veteran of the insurance and investment industry. He is a licensed insurance agent and a registered representative, offering securities through Avalon Investment and Securities Group, Inc., Muscle Shoals, AL, Member FINRA-SIPC. If you have questions or comments, or have a topic you would like him to cover, he may be reached at his Gulf Shores office at 251-968-1234 or via email at george@georgeharrisfinancial.com