Ladies, we outlive the boys by a number of years, so consider this

But older women, who outnumber older men, depend on Social Security to provide as much as 90 percent of their income when they run out of their retirement funds.

Because many of today’s older women did not earn a pension and because they live longer than their partners, Social Security is the only thing standing between many women and poverty. Women, on average, accumulate less income than men in retirement because they are more likely to have held part-time jobs, interrupt their careers to care for children or elderly family members and they still only earn about 77 percent of what men earn, according to census data.

It all means that women have less working years to pay into Social Security and since they live longer than men, they also incur more medical costs, causing them to deplete their savings.

Meanwhile, due to economic conditions, the ability of Medicare and Medicaid to meet the coming demands for care, is being challenged, with some reforms almost inevitable. Both MetLife and The Guardian have departed the long-term care insurance industry, and John Hancock and Genworth have raised rates.

However, two very large assisted-living companies have announced that they will begin offering families the option of converting existing life insurance policies to long-term care plans by working with Life Care Funding Group, so that families can exchange a life insurance policy in order to be enrolled in a long-term benefit plan that will pay a monthly amount directly to any of their facilities.

It is important for life insurance policyholders to know that at the time of lapse or surrender of their policies, they have a variety of alternative options to consider.

Life insurance policies are unqualified assets for Medicaid eligibility and are counted against an applicant if they are beyond any state-allowed exemptions. The conversion option, however, is considered a qualified spend-down and is now a strategy that can be used by long-term care providers.

Many seniors have been unaware that their life insurance policies are valuable assets and can be used in this way, and as a result, some of them let their policies lapse.

When times are tough, too many people are tempted by “get-rich quick” schemes and seniors, because they grew up in more innocent and trustworthy times, are especially vulnerable. A future column will cover protecting yourself from prize scams, but seniors, like everyone else, should remember to seek advice before making any major decision.

Call an elder law attorney or your local Agency on Aging at 203-785-8533 or The Shoreline Eldercare Alliance at 1-800-426-5086 for help.

- Article by Jean Cherni, founder of the retirement advisory service, Senior Living Solutions. Contact her at jeancherni@sbcglobal.net or 15 The Ponds at Hotchkiss Grove, Branford 06405.

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