Long-term insurance: Worth its weight?

The policies work for many, but consumers should read the fine print. And premium hikes can be shocking.

Tom Binder wanted to prepare for the future -- including the possibility that he or his wife could be stricken by a long, debilitating illness in their sunset years. ¶ "I don't think it's a good bet that you're just going to drop dead," said Binder, 50, a Santa Monica-based art dealer. "What if you suffer a stroke in your 60s or 70s, and through the miracles of medicine you live into your 90s? ¶ "That was my worst-case scenario: that I would linger for many years." ¶ To make sure that he could survive financially, Binder made a purchase that has become increasingly common for a generation that once focused almost obsessively on being young: He agreed to pay $4,500 a year for insurance to cover the costs of long-term care for him and his wife. ¶ Advocates of the insurance say it offers needed protection and peace of mind in an era of greater longevity and rising healthcare costs. Nonetheless, some experts warn consumers to proceed with caution.