The likelihood of needing long-term care services increases as we age. Long-term care insurance helps cover the costs of services for individuals who have a cognitive impairment or are unable to perform certain activities of daily living (ADLs). Long-term care services can include in-home care, assisted living, or nursing home care. These services can be costly, and without long-term care insurance to help cover these costs, the expenses can exhaust personal savings as well as assets.
Financial Factors
When considering purchasing long-term care insurance, it is wise to consider your current assets and savings, and how much you are able to spend on long-term care services. If you have a significant amount of assets and savings that you want to protect from being depleted to pay for long-term care expenses, long-term care insurance may be a good option for you. Additionally, if you do not want to be a burden on your loved ones to provide services for you, purchasing long-term care insurance can give you peace of mind that your care will be covered.
Health Factors
It is also important to consider your health and family history when deciding whether to purchase long-term care insurance. Individuals with a family history of needing long-term care services or those with pre-existing medical conditions may be more likely to need these services in the future and may benefit greatly from having long-term care insurance in place. The younger and healthier you are, the lower the cost of the insurance will be. It is generally recommended for individuals who are in their 50s or 60s to purchase long-term care insurance, as this is when the cost of the insurance tends to be lower.
Consulting with an insurance agent or financial advisor can be very helpful in deciding if long-term care insurance is right for you. You can ask any questions you may have, and they can help you better understand the many facets of long-term care insurance and when you should consider obtaining it.
