Long-term care insurance is a type of insurance that helps to cover the costs associated with long-term health care for people who need assistance with daily activities. It’s a good idea to consider buying this type of coverage, even if it seems expensive at first.
What is long-term care insurance?
Long-term care insurance is a policy that helps pay for the cost of long-term care services. Long-term care can include nursing home care, assisted living or adult day care.
Long-term care insurance is also called “continuing care insurance.”
Is long-term care insurance worth it?
Long-term care insurance isn’t right for everyone. It’s worth considering if you:
- Are entering retirement soon and want to protect yourself against the possibility of needing long-term care in the future?
- Are still relatively young and don’t expect to need it anytime soon, but want protection just in case you do need it at some point in your life.
- Have a family history of dementia or Alzheimer’s disease, which could put you at greater risk for needing long-term care.
How much does long-term care insurance cost?
The cost of long-term care insurance depends on several factors, including your age, health, and where you live. You can choose from two different types of policies:
- An indemnity policy pays a set amount for each day you use your benefits. You would receive the same amount regardless of whether or not the nursing home charges more than its standard daily rate.
- A fixed-period policy pays a lump sum that covers all expenses for a certain period of time, such as one year or three years. If you use up your coverage during this period, any ongoing costs are not covered by your policy and must be paid out-of-pocket until another premium payment is made (if possible).
If you’re over 65 & considering coverage, read this first.
If you’re over 65 and considering coverage, read this first. Long-term care insurance is not a substitute for Medicare. It can help you pay for services that Medicare doesn’t cover, but there are some important things to consider before buying.
- Is it right for me? If you have a spouse or partner who will be around to help with your care as needed, then long-term care insurance may not be necessary—particularly if they’re also covered by Medicare or another health plan that helps cover skilled nursing home stays. However, if you don’t have anyone around to provide assistance at home (and your children aren’t able to do so), then having private long-term care insurance could be worth the expense—especially if there’s no way your children would take over the task of caring for their aging parent in the future anyway.
If you’re under the age of 50 & thinking about buying coverage, read this first.
If you’re under the age of 50 and thinking about buying coverage, you might want to wait until you’re older. If you do purchase insurance before your 50th birthday, it will be more expensive than if you wait until after then. (You can always purchase a policy later if something changes in your life.)
Another option is to consider a low-cost policy with a high deductible—this way, if something happens while in this plan, the costs won’t be as high as they would be had they occurred while purchasing long-term care insurance at an earlier age.
This popular kind of policy can be expensive, but it might still be right for you.
Long-term care insurance is a popular kind of policy, but it can be expensive. Before you buy a long-term care policy, it’s important to understand your options and how much coverage you’ll need.
For instance, it’s important to think about whether or not you can afford the premiums before buying a long-term care policy. You also need to consider how much coverage you will need in order to make sure the policy covers the services that are most important to you when considering your budget and financial situation.
Even with the high cost of long-term care insurance, it can still be worth it for some people. It’s important to be aware of all your options before deciding on this type of coverage so you can make an informed decision about how much risk you want to take on and where you’re willing to invest your money.