Much has been made over the baby boomer generation’s impending descent into old age and the economical and social effects that it implies. The greatest question and concern among these is what the cost of providing healthcare on a large scale to the populous, healthier boomers would be.  Medicine has made it possible for the average 65-year old man or woman to have a 1-in-3 chance of living to age 95. This means that even the healthiest and most well planned retirement funds could start growing inadequate in the face of rising long term healthcare costs.

What does this mean for life insurance consumers? Well, first and foremost the age in which one considers life insurance coverage necessary will grow even longer – as well as the age in which one would work and be considered a provider. Long term healthcare costs have risen an average of six percent in 2006, and can now be predicted to consume around $20,000 a year for basic elder healthcare. The debts accumulated by such care can eat up a savings or an estate – and maybe even leave behind a nasty trail of debts to loved ones.

Solution? Life insurance and/or long term care insurance.  Long term care insurance, which provides protection from the steep costs of elder care, can cost a few hundred dollars a year if purchased at a young enough age. At age 80, long-term care insurance averages at around $30,000-$40,000 a year.

Life insurance however, makes an excellent financial pillow to protect loved ones from debt or supplement retirement savings all around.  Especially if the insured has to provide themselves or their family for a longer time than they planned for. For stability’s sake, the best options are: whole life insurance and universal life insurance and even term life insurance with a guaranteed renewability clause. These insurance options protect the insured from a premium hike as a result of any changes in his/her health status and can be a realistic solution to stress and guilt that could accrue as a result of piling debt in the latter half of life.

In all, the predicted long retirement lives of baby boomers will begin to function as a veritable “second half” of life – one that can last as long as the working half. The as of yet unpredictable effects of this will undoubtedly change the face of financial planning and costs of living for seniors. It is hard to prepare for uncertainty, especially when dealing with the fragility of a human life, but acting sooner rather than later will no doubt reduce the stress and risk of the potential consequences.