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Dear Savvy Senior,

My neighbor recently bought a nursing home care insurance policy and keeps telling me that my wife and I need to get it too. He tells us all those scary nursing home statistics that are very convincing but I hate the idea of paying those high premiums. We’re a middle class couple that own our house and have been fortunate enough to accumulate some other assets to leave to our children but we’re not rich by any means. Can you give us some bare facts on this issue? I think my neighbor is telling me what his pushy insurance salesman told him, and I don’t want to be sold something based on fear. Can you help? Fear of a Salesman

Dear Fear,

You’re smart to do your homework on this subject. Some people who sell long-term care (LTC) in-surance will tell you that everybody needs a policy. Not true! Here are some things to consider to help you make a decision that’s in your best interest.

Playing the Odds Some nursing home statistics indicate an estimated 43 percent of Americans over age 65 are expected to spend some time in a nursing home during their lifetime But, you also need to know that statistics also count the very short stays for which insurance may not be necessary. If you rule out nursing home visits lasting less than three months, only about 33 percent of the population will spend time in a care facility.

Financial Status

Both the wealthy and the very poor probably don’t need LTC insurance because wealthy people can afford nursing home care on their own, and the poor should be able to qualify for Medicaid.

Middle class income people are the best candidates to need LTC insurance because they have assets to protect.

Are You Healthy?

In most cases it’s disease that puts people in nursing homes. Not old age. The diseases that cause the highest number of LTC insurance claims are Alzheimer’s and other types of dementia, followed by complications from a stroke, fractures from falls, and heart disease. What is your family history of these?

LTC Cost

If you decided to get LTC insurance, how much is enough? Long-term care insurance policies vary greatly in what and how much they cover and in how much they charge. Here are some questions to help you make your decisions.

How long? One potential way to keep your premiums from going too high is to cap the length of your policy. The average claim length on long-term care insurance policies is about two years.

How old? The younger you are when you sign up, the less you’ll pay for your premium. In 2003 the national average policy for a 60-year-old costs a little over $2,000 per year. The same policy could cost a 70-year-old about $4,500.

How much? Before you sign up, consider how much income you would have without insurance. Suppose nursing homes in your area cost $4,000 a month. If you have $3,000 per month of income coming in you may need an insurance policy that covers the $ 1,000 difference.

Who’s got a deal? A common mistake is to automatically turn to your car or homeowners’ insurance agent. LTC coverage is highly specialized and you should check out a variety of companies before signing.

Area Agency on Aging: May provide information and assistance on comparing LTC policies.

Call 1-800-677-1116.

Send your senior questions to Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit www.savvysenior.org.