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Long Term Care Insurance

February 21, 2015

Lately, I have been receiving solicitations from insurance companies pushing LTC insurance.  I have become aware of just how expensive it can be to go through long-term care(nursing homes, residential care facilities, etc.) It is easy to see life savings eaten up by just a few years of long-term care.

LTC insurance can be a good idea for some people.  If you have assets that exceed the value of your home by three to five hundred thousand dollars, LTC may be a good idea and a safe bet.  This is because LTC insurance for people in this category is considered more of a safety net instead of a financial investment.  It is even more true when your LTC insurance covers the cost and expenses for assisted living facilities.

A majority of people that purchase LTC insurance buy it at a median age of 65 years old. Before this age, most people are unable to predict their financial futures to such a degree as to know what kinds of finances they will be facing when/if they need long-term care.  In addition, for people that put off the decision about LTC insurance until they are older, the premiums are often astronomically expensive, well out of their price range.  So, if you are considering LTC insurance for yourself, you should expect to come to a decision around age 65.

Before committing to the purchase of a LTC insurance plan, you should ask your financial advisor about it and see if it makes sense.