Is Long Term Care Insurance Worth the Money? A Financial Expert Weighs In

Long Term Care Insurance is a type of insurance that covers the cost of long term care services, which are typically not covered by health insurance or Medicare. These services include assistance with activities of daily living such as bathing, dressing, and eating, as well as care in a nursing home, assisted living facility, or at home.

It depends on your individual circumstances. If you have significant assets that you want to protect and don’t want to burden your family with the cost of long term care, then long term care insurance may be worth considering. However, if you have limited assets and would qualify for Medicaid, then long term care insurance may not be necessary.

The cost of Long Term Care Insurance varies depending on a number of factors including your age, health, and coverage options. According to the American Association for Long-Term Care Insurance, the average cost of a policy for a 55-year-old couple is around $3,050 per year.

Long Term Care Insurance can provide peace of mind knowing that you will be able to afford the care you need if you become unable to care for yourself. It can also help protect your assets from being depleted by the high cost of long term care services. Additionally, some policies offer benefits such as care coordination and assistance with finding care services.

One of the main drawbacks of Long Term Care Insurance is the cost. Premiums can be expensive, especially for older individuals or those with pre-existing health conditions. Additionally, some policies have strict eligibility requirements and may not cover all types of long term care services. Finally, there is always the possibility that you may never need to use the policy, in which case you would have paid premiums for nothing.

Whether or not you should buy Long Term Care Insurance depends on your individual circumstances and financial situation. It’s important to weigh the potential benefits against the cost of the premiums and the likelihood that you will need long term care services. Consulting with a financial advisor can help you make an informed decision.