Maslow’s hierarchy of needs is a theory in psychology proposed by Abraham Maslow in his 1943 paper “A Theory of Human Motivation” in Psychological Review. Maslow subsequently extended the idea to include his observations of humans’ innate curiosity.
In Maslow’s seminal observations, he describes the needs we have as human beings – from the physiological to the existential; from the mundane to the sacred. What Maslow doesn’t elaborate on, however, is the relative cost of these needs. He doesn’t tell us, for example, the physiological and safety needs – those at the bottom of the pyramid – those that most resemble long-term care’s Activities of Daily Living (ADL), are far and away the most expensive components of the pyramid.
Thus, for those familiar with the long-term care needs of a parent, spouse, child, etc. – whether that care is provided at home or in a facility – don’t need to be “sold” on the idea of underwriting those costs through an insurer, for pennies on the dollar. They know now what they probably didn’t know before — Medicare does not pay for ADLs. There is no defined Long Term Care (LTC) benefit in America. So, given the opportunity to purchase LTC insurance, most caregivers would have but one question: ‘What’s the maximum benefit I can buy?’
But of course, that’s not the way insurance works.
Unless . . . and I hesitate to state the obvious . . .unless you purchase an LTC policy when you’re young and healthy.
In this scenario, you are literally paying pennies for dollars.
As an example, I offer the story of one Martin K Bayne. Mr. Bayne purchased an LTC policy in 1994 from Travelers. Less than three years later, he was diagnosed with Parkinson’s.
To date, Bayne’s policy has paid more than $720,000 in claims.
Need I say more?
JOhn says
November 13, 2016 at 3:40 pmI Agree with you
pgb says
August 10, 2016 at 9:29 amWhy doesn’t Medicare cover more? Should good health care be dependent upon ability to pay? There are many reasons that people do not purchase long term health care when they are young – ex. single mothers often are catapulted into poverty along with their children by America’s inequitable legal system. Twice as many women are in poverty in their later years than men. Meanwhile, the AARP literally is making billions from the sale of Medigap insurance. There is no advocacy to achieve health care advances for older Americans (indeed, the opposite is true.
Martin Bayne says
August 22, 2016 at 10:39 amWhen you’re facing Goliath, make sure your aim is true and your facts straight: where did you get your data on women in poverty? How about AARP Medigap insurance? You write, “There is no advocacy to achieve health care advances for older Americans.” Is their one for younger Americans? Your heart’s in the right place, just keep your facts straight. mkb